You must find the payback for a project, and you have misplaced some of the information that you were given. You know that the project will generate positive cash flows of $60,000 per year at the end of each of the next 5 years, that its NPV is $75,000, and that the company's WACC is 10%. What is the project's regular payback? Hint: You must first find the project's cost, then use it to find the payback.
You must find the payback for a project, and you have misplaced some of the information that you were given. You know that the project will generate positive cash flows of $60,000 per year at the end of each of the next 5 years, that its NPV is $75,000, and that the company's WACC is 10%. What is the project's regular payback? Hint: You must first find the project's cost, then use it to find the payback.
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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You must find the payback for a project, and you have misplaced some of the information that you were
given. You know that the project will generate positive cash flows of $60,000 per year at the end of each of
the next 5 years, that its
payback? Hint: You must first find the project's cost, then use it to find the payback.
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