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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
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Ll 2 just need last one fixed
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
@
Answer is complete but not entirely correct.
2
W
80
#
E
C
$
4
3.48 years
3.91
5.86
R
years
years
L
%
< Prev
T
#
A
G
2 of 7
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7
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00
U
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 @ Answer is complete but not entirely correct. 2 W 80 # E C $ 4 3.48 years 3.91 5.86 R years years L % < Prev T # A G 2 of 7 & 7 Next > 00 U
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