Project X has an initial cost of $46,919, and its expected net cash inflows are $11,500 per year for 6 years. The firm has a WACC of 8 percent, and Project X's risk would be similar to that of the firm's existing assets. Calculate the discounted payback period of Project X. 5.14 years |
Project X has an initial cost of $46,919, and its expected net cash inflows are $11,500 per year for 6 years. The firm has a WACC of 8 percent, and Project X's risk would be similar to that of the firm's existing assets. Calculate the discounted payback period of Project X. 5.14 years |
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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![Project X has an initial cost of $46,919, and its expected net cash inflows are $11,500 per year for 6 years. The firm has a
WACC of 8 percent, and Project X's risk would be similar to that of the firm's existing assets. Calculate
the discounted payback period of Project X. 5.14 years |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28e08b08-ed51-466b-b391-0e2ed238e124%2Fc4ac74f7-2471-4847-a468-39b0a4673123%2Fpnncw9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Project X has an initial cost of $46,919, and its expected net cash inflows are $11,500 per year for 6 years. The firm has a
WACC of 8 percent, and Project X's risk would be similar to that of the firm's existing assets. Calculate
the discounted payback period of Project X. 5.14 years |
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