Consider the investment projects in Table P5.6. all of which have a four-year investment life. (a) What
Question:
Consider the investment projects in Table P5.6. all of which have a four-year investment life.
(a) What is the payback period of each project?
(b) What is the discounted payback period at an interest rate of 15% for each project?
Transcribed Image Text:
TABLE P5.6 n 0 1 2 3 4 A -$2,500 0 0 0 6,200 Project's Cash Flow ($) B с -$3,500 -$2,800 1,600 -1,800 2,800 -900 3,500 4,500 2,200 4,500 D -$2,300 -1,000 1,900 2,300 1,500
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