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28 Sep 2019
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively
Time: 0 1 2 3 4 5 6 Cash flow â$5,000 $1,270 $2,470 $1,670 $1,670 $1,470 $1,270
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)
Discounted payback years
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively
Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | â$5,000 | $1,270 | $2,470 | $1,670 | $1,670 | $1,470 | $1,270 |
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
Discounted payback | years |
Keith LeannonLv2
28 Sep 2019