Homework Help is Here – Start Your Trial Now!
Business
Finance
unted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at thre and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback p cepted under pay Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Projoct 3 Project 4 Project 1 $12,000 $5.000 $5,000 $5,000 Project 2 $14,000 Cash Flow $22,000 $9,000 $3.000 $3,500 Initial Cost $10,000 $14,000 Year 1 $7.000 Year 2 $5,500 Year 3 $4,000 $4,000 Print Done

unted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at thre and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback p cepted under pay Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Projoct 3 Project 4 Project 1 $12,000 $5.000 $5,000 $5,000 Project 2 $14,000 Cash Flow $22,000 $9,000 $3.000 $3,500 Initial Cost $10,000 $14,000 Year 1 $7.000 Year 2 $5,500 Year 3 $4,000 $4,000 Print Done

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question
unted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback per cepted under pay Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project 1 Project 2 Project 3 Project 4 $22,000 $9,000 $3,000 $3,500 Initial Cost $12,000 $14,000 $10,000 $7.000 $5,500 Year 1 $5,000 Year 2 $5,000 $14,000 Year 3 $5,000 $4,000 $4.000 2$ Print Done
Transcribed Image Text:unted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback per cepted under pay Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project 1 Project 2 Project 3 Project 4 $22,000 $9,000 $3,000 $3,500 Initial Cost $12,000 $14,000 $10,000 $7.000 $5,500 Year 1 $5,000 Year 2 $5,000 $14,000 Year 3 $5,000 $4,000 $4.000 2$ Print Done
Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years. Given the following four projects' cash flows, and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback period. Which projects that would have been accepted under payback period method will now be rejected under the discounted payback period method? (Select the best response.) O A. Project 1, project 4 O B. Project 2, project 4 O C. Project 3, project 4 O D. None of them
Transcribed Image Text:Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years. Given the following four projects' cash flows, and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback period. Which projects that would have been accepted under payback period method will now be rejected under the discounted payback period method? (Select the best response.) O A. Project 1, project 4 O B. Project 2, project 4 O C. Project 3, project 4 O D. None of them
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS