# Question: An investment project has annual cash inflows of 5 000

An investment project has annual cash inflows of $ 5,000, $ 5,500, $ 6,000, and $ 7,000, and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $ 8,000? What if the initial cost is $ 12,000? What if it is $ 16,000?

**View Solution:**## Answer to relevant Questions

An investment project costs $ 15,000 and has annual cash flows of $ 3,800 for six years. What is the discounted payback period if the discount rate is 0 percent? What if the discount rate is 10 percent? If it is 15 percent?Suppose you are offered $ 7,000 today but must make the following payments: Year Cash Flows ($) 0 ........ $ 7,0001 ........ - 3,7002 ........ - 2,4003 ........ - 1,5004 ........ - 1,200a. What is the IRR of ...The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of projects A, B, and C as follows:Suppose the relevant discount rate is 12 percent a year. a. Compute the profitability index for each of the three ...Consider two streams of cash flows, A and B. Stream A’s first cash flow is $ 8,900 and is received three years from today. Future cash flows in Stream A grow by 4 percent in perpetuity. Stream B’s first cash flow is – ...Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $3.8 million. The marketing department predicts that sales related to the project will be $2.5 ...Post your question