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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Ll 2 just need last one fixed

Transcribed Image Text:An investment project costs $10,000 and has annual cash flows of $2,870 for six years.
a. What is the discounted payback period if the discount rate is zero percent? (Enter 0 if
the project never pays back. Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
b. What is the discounted payback period if the discount rate is 5 percent? (Enter O if
the project never pays back. Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
c. What is the discounted payback period if the discount rate is 20 percent? (Enter 0 if
the project never pays back. Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
Mc
Graw
Hill
Q
a. Discounted payback period
b. Discounted payback period
c. Discounted payback period
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3.48 years
3.91
5.86
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