Lloyd Enterprises has a project which has the following cash flows: Year Cash Flow 0 -$200,000 1 50,000 2 100,000 3 150,000 4 40,000 5 25,000 The cost of capital is 20 percent. What is the project's discounted payback

Lloyd Enterprises has a project which has the following cash flows: Year Cash Flow 0 -$200,000 1 50,000 2 100,000 3 150,000 4 40,000 5 25,000 The cost of capital is 20 percent. What is the project's discounted payback

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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Question

Lloyd Enterprises has a project which has the following cash flows:

Year Cash Flow

0 -$200,000
1 50,000
2 100,000
3 150,000
4 40,000
5 25,000

The cost of capital is 20 percent. What is the project's discounted payback

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