Macy Pharmacy has a project which has the following cash flows. Year 0-$200,000 Year 1 = $50,000 Year 2= $100,000 Year 3 = $150,000 Year 4= $40,000 Year 5= $25,000 The cost of capital is 10%. What is the project's discounted payback? 1.8763 years 2.0000 years O2.3333 years O2.4793 years O2.6380 years

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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Macy Pharmacy has a project which has the following cash flows.
Year 0-$200,000
Year 1 = $50,000
Year 2= $100,000
$150,000
Year 3
Year 4 $40,000
=
Year 5 $25,000
The cost of capital is 10%. What is the project's discounted payback?
1.8763
3 years
O2.0000 years
O2.3333 years
O2.4793 years
O2.6380 years
Transcribed Image Text:Macy Pharmacy has a project which has the following cash flows. Year 0-$200,000 Year 1 = $50,000 Year 2= $100,000 $150,000 Year 3 Year 4 $40,000 = Year 5 $25,000 The cost of capital is 10%. What is the project's discounted payback? 1.8763 3 years O2.0000 years O2.3333 years O2.4793 years O2.6380 years
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