Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 1 2 3 4 5 Cash flow: -$4,700 $1,170 $2,370 $1,570 $1,570 $1,370 $1,170 Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Discounted payback years
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 1 2 3 4 5 Cash flow: -$4,700 $1,170 $2,370 $1,570 $1,570 $1,370 $1,170 Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Discounted payback years
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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![5
Suppose your firm is considering investing in a project with the cash flows shown below, that the required
rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and
discounted payback statistics for the project are 2.0 and 3.0 years, respectively.
Time:
1
2
3
4
Cash flow: -$4,700 $1,170 $2,370 $1,570 $1,570 $1,370 $1,170
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal
places.)
Print
Ferences
Discounted payback
years
Should it be accepted or rejected?
аcсepted
O rejected](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F176205cf-6965-40e9-a799-ef0e1b5def40%2F171f72ef-c70e-43a2-9b9c-3533daea7666%2Fbioau4r_processed.png&w=3840&q=75)
Transcribed Image Text:5
Suppose your firm is considering investing in a project with the cash flows shown below, that the required
rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and
discounted payback statistics for the project are 2.0 and 3.0 years, respectively.
Time:
1
2
3
4
Cash flow: -$4,700 $1,170 $2,370 $1,570 $1,570 $1,370 $1,170
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal
places.)
Print
Ferences
Discounted payback
years
Should it be accepted or rejected?
аcсepted
O rejected
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