CORPORATE FINANCE
CORPORATE FINANCE
12th Edition
ISBN: 9781307702804
Author: Ross
Publisher: MCG/CREATE
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Chapter 5, Problem 4QAP
Summary Introduction

Discounted Payback period:

Payback period determine the period within which the investment is able to recover the cost or amount invested. This is referred as a period at which the investor is at par with all the cash recovered that have been invested. However, the cumulative cashflows shall be taken after computing the present value of cashflows

Requirement 1

To determine:

The project to be accepted as per discounted payback period at 0%.

Requirement 2

To determine:

The project to be accepted as per discounted payback period at 10%.

Requirement 3

To determine:

The project to be accepted as per discounted payback period at 17%.

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CORPORATE FINANCE

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