Suppose your firm is considering investing in a project with the cash flows shown below, that...
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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.5 and 3.5 years, respectively. Time: 1 2 3 Cash flow: -$4,600 $1,160 $2,360 $1,560 $1,560 5 $1,360 years 6 $1,160 Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Payback Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.5 and 3.5 years, respectively. Time: 1 2 3 Cash flow: -$4,600 $1,160 $2,360 $1,560 $1,560 5 $1,360 years 6 $1,160 Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Payback
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Solution Payback 4 Years Explanation The payback period is the amount of time it takes for a proj... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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