Question: Compute the discounted payback period (DPB) for a project with the following cash flows, if the companys discount rate is 12%. Initial outlay = -$500

Compute the discounted payback period (DPB) for a project with the following cash flows, if the companys discount rate is 12%.

Initial outlay = -$500

Cash flows: Year 1 = $375

Year 2 = $98

Year 3 = $362

Year 4 = $35

Please round your answer to the second decimal. E.g. 1.23

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

You are an attorney at the law firm that represents Danfield's Auto Express. Your supervisor, Attorney Donna Defense, wants you to draft an internal memorandum of law to her assessing whether or not...

Q:

What is the discounted payback period for a 3-year project with the following cash flows and a discount rate of 5%? Year Cash Flow 0 (90,000) 1 35,000 2 40,000 3 55,000

Q:

Compute the Discounted Payback Periods (DPB) for a project with the following cash flows, if the companys discount rate is 15%. Initial outlay = -$9,000 Cash flows: Year 1 = $3550 Year 2 = $2458 Year...

Q:

Compute the discounted payback period for a project with the following cash flows, if the company's discount rate is 0.0950, compounded annually. The firm has a 3-year discounted payback requirement....

Q:

Estimate the payback period and discounted payback period for the following cash flows with a discount rate of 7%. Data Year : Initial investment, 1, 2, 3, 4, 5 Net Cash Flows per Year : -130000,...

Q:

Estimate the payback period and discounted payback period for the following cash flows with a discount rate of 7%. Data Year : Initial investment, 1, 2, 3, 4, 5 Net Cash Flows per Year : -130000,...

Q:

Estimate the payback period and discounted payback period for the following cash flows with a discount rate of 7%. Data Year : Initial investment, 1, 2, 3, 4, 5 Net Cash Flows per Year : -130000,...

Q:

Compute the discounted payback period for a project with the following cash flows, if the company's discount rate is 0.0950, compounded annually. The firm has a 3-year discounted payback requirement....

Q:

7. I can buy a business that promises a $15,500 cash flow every year for the next 6 years. How much should I pay to acquire this business if I require a 14% rate of return? A $50,274.35 B $60.000.87...

Q:

please solve on paper ... 3 Project (Individual) Question 1: Answer the following questions: ..(8 Marks) 1. Explain the difference between a bid price and an asked price and also explain why the...

Q:

PRACTICE: CHAPTERS S, 6,7(Show all formula and calculations for full points) 1. Genuine Product Inc. requires a new machine. Two companies have submited bids, and you have been assigned the task of...

Q:

A house that was heated by electric resistance heaters consumed 1200 kWh of electric energy in a winter month. If this house were heated instead by a heat pump that has an average COP of 2.4,...

Q:

Using an Excel spreadsheet, you will create a three-year ratio trend analysis from the financial statements data for Hershey corporation. Your spreadsheet must include actual formulas that calculate...

Q:

CO3 - Create financial plans and strategies that Integrate knowledge from various aspects of financial management, investment analysis, and risk management. How can organizations develop...

Q:

serial number is 44 2) A technology company is planning to purchase one of two chips. Due to the pace of technological change in this area, it is realistic to assume that these are one-shot...