The project’s hurdle rate is 10%. What is the project’s discounted payback?15 years2.58 years4.09 years3.09 years Pears is considering a project with the following expected cash flows:YearProject Cash Flow- P700 million200 million370 million225 million700 millionO12 34

Solution: initial investment = P700 million Discount rate = 10%

Answered: The project’s hurdle rate is 10%. What…

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The project’s hurdle rate is 10%. What is the project’s discounted payback? 15 years 2.58 years 4.09 years 3.09 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The project’s hurdle rate is 10%. What is the project’s discounted payback?

15 years

2.58 years

4.09 years

3.09 years

Pears is considering a project with the following expected cash flows:
Year
Project Cash Flow
- P700 million
200 million
370 million
225 million
700 million
O12 34

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