A firm is evaluating a capital budgeting project that generates cash inflows equal to $50 per...
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A firm is evaluating a capital budgeting project that generates cash inflows equal to $50 per year for the next five years. If the project's initial cost is $180. The firm's required rate of return is 15%. (a) What is the project's traditional payback period? (b) What is the project's discounted payback period? A firm is evaluating a capital budgeting project that generates cash inflows equal to $50 per year for the next five years. If the project's initial cost is $180. The firm's required rate of return is 15%. (a) What is the project's traditional payback period? (b) What is the project's discounted payback period?
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a The traditional payback period is the time it takes for the initial investment to be recovered from the projects cash inflows To calculate the tradi... View the full answer
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