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%.
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%.
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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Transcribed Image Text: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%.
Question 2
An 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%.
Year
1
2
3
4
5
6
7
8
Cash Flow (RM)
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
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