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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
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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
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