Bensington Glass Co. is considering the expansion of it spandrel glass business line. They plan to...

 

Transcribed Image Text:

Bensington Glass Co. is considering the expansion of it spandrel glass business line. They plan to convert an unused space of their warehouse into additional manufacturing space. They estimate the initial investment will be $9,050,000 and expect the new production to create additional cash flows of $4,165,000 in year's one through ten. If Bensington Glass uses a discount rate of 19%, what is the project's discounted payback period? Bensington Glass Co. is considering the expansion of it spandrel glass business line. They plan to convert an unused space of their warehouse into additional manufacturing space. They estimate the initial investment will be $9,050,000 and expect the new production to create additional cash flows of $4,165,000 in year's one through ten. If Bensington Glass uses a discount rate of 19%, what is the project's discounted payback period?

Answer rating: 100% (QA)

To calculate the discounted payback period for the project we need to determine how long it takes for the discounted cash flows to recover the initial investment Step 1 Calculate the discounted cash f... View the full answer