What is the discounted payback period on Versace's proposed investment in a new line of fashion clothes? The expected cash flows appear below. Note that year 0 and year 1 cash flows are negative. (Answer in years; round to 2 decimals) Year 0 cash flow = -95,000 Year 1 cash flow = -28,000 Year 2 cash flow = 37,000 Year 3 cash flow = 45,000 Year 4 cash flow = 51,000 Year 5 cash flow = 47,000 Year 6 cash flow = 54,000
What is the discounted payback period on Versace's proposed investment in a new line of fashion clothes? The expected cash flows appear below. Note that year 0 and year 1 cash flows are negative. (Answer in years; round to 2 decimals) Year 0 cash flow = -95,000 Year 1 cash flow = -28,000 Year 2 cash flow = 37,000 Year 3 cash flow = 45,000 Year 4 cash flow = 51,000 Year 5 cash flow = 47,000 Year 6 cash flow = 54,000
Chapter12: Managing Economic Exposure And Translation Exposure
Section: Chapter Questions
Problem 3BIC
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Transcribed Image Text:What is the discounted payback period on Versace's proposed investment in a new line of fashion clothes? The expected cash flows appear below. Note that year 0 and year 1 cash flows are negative.
(Answer in years; round to 2 decimals)
Year 0 cash flow = -95,000
Year 1 cash flow = -28,000
Year 2 cash flow = 37,000
Year 3 cash flow = 45,000
Year 4 cash flow = 51,000
Year 5 cash flow = 47,000
Year 6 cash flow = 54,000
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