Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project

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Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $ 100,000 and the following cash flows?
Year 1 = $ 30,000
Year 2 = $ 35,000
Year 3 = $ 25,000
Year 4 = $ 25,000
Year 5 = $ 30,000
Year 5 = $ 20,000 Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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