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Project 1 Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500 1500 WACC 15% Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Discounted Cash Flow -5000 434.78 1739.13 2608.70 869.57 Cumulative Discounted Cash Flow -5000 -4565.22 -2826.09 -217.39 652.17 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

Project 1 Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500 1500 WACC 15% Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Discounted Cash Flow -5000 434.78 1739.13 2608.70 869.57 Cumulative Discounted Cash Flow -5000 -4565.22 -2826.09 -217.39 652.17 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

Essentials Of Investments
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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Please provide the Payback period and Discounted Payback Period:

 

 

QUESTION 26 Using the information in the table below calculate the Payback Period AND Discounted Payback Period for Project 1 (in years). Project 1 Years 1 2 4 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500 1500 WACC 15% Years 1 3 4 Cash Flow -5000 500 2000 3000 1000 Discounted Cash Flow -5000 434.78 1739.13 2608.70 869.57 Cumulative Discounted Cash Flow -5000 -4565.22 -2826.09 -217.39 652.17 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 14px A Ix Ex:
Transcribed Image Text:QUESTION 26 Using the information in the table below calculate the Payback Period AND Discounted Payback Period for Project 1 (in years). Project 1 Years 1 2 4 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500 1500 WACC 15% Years 1 3 4 Cash Flow -5000 500 2000 3000 1000 Discounted Cash Flow -5000 434.78 1739.13 2608.70 869.57 Cumulative Discounted Cash Flow -5000 -4565.22 -2826.09 -217.39 652.17 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 14px A Ix Ex:
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