Question: Accounting- Discounted payback period Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 Cash flows -$900 $500 $500 $500 a. 1.88 years b. 2.09 years c. 2.29 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
Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
Section: Chapter Questions
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Question: Accounting- Discounted payback period
Fernando Designs is considering a project that has the following cash flow and WACC data.
What is the project's discounted payback?
WACC: 10.00%
Year
0 1
2
3
Cash flows -$900 $500 $500 $500
a. 1.88 years
b. 2.09 years
c. 2.29 years
Transcribed Image Text:Question: Accounting- Discounted payback period Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 Cash flows -$900 $500 $500 $500 a. 1.88 years b. 2.09 years c. 2.29 years
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