GENERAL INSTRUCTIONS: ENTER YOUR ANSWER AS A NUMBER WITHOUT A COMMA, ROUNDED TO THE WHOLE NUMBER OF YEARS (Do not include the word "years". For instance if you calculate 12.34 then enter your answer as 12). DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. Calculate the simple (no-return) payback period (in number of years) for a project that requires $540,000 of initial cost today, and generates a net cash flow of $108,000 per year for 10 years, with a $45,000 salvage value at the end of year 10. Answer:
GENERAL INSTRUCTIONS: ENTER YOUR ANSWER AS A NUMBER WITHOUT A COMMA, ROUNDED TO THE WHOLE NUMBER OF YEARS (Do not include the word "years". For instance if you calculate 12.34 then enter your answer as 12). DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. Calculate the simple (no-return) payback period (in number of years) for a project that requires $540,000 of initial cost today, and generates a net cash flow of $108,000 per year for 10 years, with a $45,000 salvage value at the end of year 10. Answer:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:GENERAL INSTRUCTIONS: ENTER YOUR ANSWER AS A NUMBER WITHOUT A COMMA, ROUNDED TO THE WHOLE
NUMBER OF YEARS (Do not include the word "years". For instance if you calculate 12.34 then enter your answer as 12).
DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS.
Calculate the simple (no-return) payback period (in number of years) for a project that requires $540,000 of initial cost
today, and generates a net cash flow of $108,000 per year for 10 years, with a $45,000 salvage value at the end of year
10.
Answer:
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