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Collen VonLv213 Feb 2018 Related questions
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 8 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$5,200 $1,290 $2,490 $1,690 $1,690 $1,490 $1,290
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)
Discounted payback years
Should it be accepted or rejected?
Rejected Accepted
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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.
Time: 0 1 2 3 4 5 6 Cash flow â$4,500 $1,150 $2,350 $1,550 $1,550 $1,350 $1,150
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)
Discounted payback years
Should it be accepted or rejected?
Rejected Accepted
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 10 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.
Time 0 1 2 3 4 5 6 Cash Flow -1,050 150 450 650 650 250 650
Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected?
3.14 years, reject
3.12 years, reject
2.80 years, accept
2.88 years, accept
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Related questions
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 8 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$5,200 | $1,290 | $2,490 | $1,690 | $1,690 | $1,490 | $1,290 |
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
Discounted payback | years |
Should it be accepted or rejected? |
|
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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. |
Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | â$4,500 | $1,150 | $2,350 | $1,550 | $1,550 | $1,350 | $1,150 |
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
Discounted payback | years |
Should it be accepted or rejected? |
|
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 10 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.
Time | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash Flow | -1,050 | 150 | 450 | 650 | 650 | 250 | 650 |
Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected?
3.14 years, reject
3.12 years, reject
2.80 years, accept
2.88 years, accept