Question 1An initial amount of RM 2,000,000 is expected to generate RM 500,000 per year for 6 years.Calculate the discounted payback period of the amount if the discounted payback period is 11%.Question 2An initial investment of RM 50,000 is expected to generate RM 10,000 per year for 8 years.Calculate the discounted payback period of the investment if the discount rate is 11%.Year12345678Cash Flow (RM)10,00010,00010,00010,00010,00010,00010,00010,000

Discounted Payback Period refers to the period or duration within which the company is able to…

Answered: Question 1 An initial amount of RM…

Question 1 An initial amount of RM 2,000,000 is expected to generate RM 500,000 per year for 6 years. Calculate the discounted payback period of the amount if the discounted payback period is 11%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Application of Time Value of Money (TVM)

The time value of money can be incorporated either by discounting the future value or by using the present value to find the future value.

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