What is the discounted payback period for a project that costs $100 today, pays $70 in one

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What is the discounted payback period for a project that costs $100 today, pays $70 in one year, and another $70 in two years if the cost of capital is 10% per year?

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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: Feb 21, 2023 12:43 AM

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What is the discounted payback period for a project that costs $100 today, pays $70 in one

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Expert Answer:

The discounted payback period is the length of time it takes for the sum of the discounted cash flows to equal the initial investment To calculate this we need to discount each cash flow ... View the full answer

Fundamentals Of Corporate Finance

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