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 13 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time Cash Flow 2 3 4 5 6 O 1 -1,160 20 580 780 780 380 780 Use the payback decision rule to evaluate this project; should it be accepted or rejected? 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 13 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time Cash Flow 2 3 4 5 6 O 1 -1,160 20 580 780 780 380 780 Use the payback decision rule to evaluate this project; should it be accepted or rejected?
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To evaluate the project using the payback period decision rule we calculate the time it takes for th... 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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