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 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: Cash flow: 5 -$ 4,700 $ 1,130 $ 2,330 $1,530 $ 1,530 $ 1,330 Use the discounted payback decision rule to evaluate this project. Note: Round your answer to 2 decimal places. Discounted payback Should it be accepted or rejected? (Click to select) years $ 1,130
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 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: Cash flow: 5 -$ 4,700 $ 1,130 $ 2,330 $1,530 $ 1,530 $ 1,330 Use the discounted payback decision rule to evaluate this project. Note: Round your answer to 2 decimal places. Discounted payback Should it be accepted or rejected? (Click to select) years $ 1,130
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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Question
![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 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0
years, respectively.
Time:
Cash flow:
0
1
2
4
5
-$4,700 $ 1,130 $ 2,330 $ 1,530 $1,530 $ 1,330
Use the discounted payback decision rule to evaluate this project.
Note: Round your answer to 2 decimal places.
Discounted payback
Should it be accepted or rejected?
(Click to select) ✓
years
6
$ 1,130](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a130e85-11e7-4176-8379-853b51fd42e7%2Ffa83cb36-df92-49b2-a145-a2d803647235%2F4bcyay_processed.png&w=3840&q=75)
Transcribed Image Text: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 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0
years, respectively.
Time:
Cash flow:
0
1
2
4
5
-$4,700 $ 1,130 $ 2,330 $ 1,530 $1,530 $ 1,330
Use the discounted payback decision rule to evaluate this project.
Note: Round your answer to 2 decimal places.
Discounted payback
Should it be accepted or rejected?
(Click to select) ✓
years
6
$ 1,130
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