A firm is looking at a new project that costs $100,000 to start and has estimated...

 

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A firm is looking at a new project that costs $100,000 to start and has estimated the following future cash flows: Year 1: CF= $65,000 Year 2: CF= $25,000 Year 3: CF= $90,000 The firm's required return on assets of this risk is 10%. What is the discounted payback period? A firm is looking at a new project that costs $100,000 to start and has estimated the following future cash flows: Year 1: CF= $65,000 Year 2: CF= $25,000 Year 3: CF= $90,000 The firm's required return on assets of this risk is 10%. What is the discounted payback period?

Answer rating: 100% (QA)

The discounted payback period for this project is approximately 10 years Heres how we can calculate ... View the full answer