If a project costs $110,000 and is expected to return $26,500 annually, how long does it take to recover the initial investment? What would be the discounted payback period at /= 18%? Assume that the cash flows occur continuously throughout the year.

If a project costs $110,000 and is expected to return $26,500 annually, how long does it take to recover the initial investment? What would be the discounted payback period at /= 18%? Assume that the cash flows occur continuously throughout the year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a project costs $110,000 and is expected to return $26,500 annually, how long does it take to recover the initial investment? What would be the discounted payback period at /= 18%?
Assume that the cash flows occur continuously throughout the year.

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