Question: Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is four
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)
Project D
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow | $12,000 | $3,450 | $4,380 | $1,720 | $0 | $1,200 |
Discounted payback period=
| Should the project be accepted or rejected? | ||||
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