An investment project costs $15,300 and has annual cash flows of $3,700 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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An investment project costs $15,300 and has annual cash flows of $3,700 for six years.
a. What is the discounted payback period if the discount rate is zero percent?
Discounted payback period
b. What is the discounted payback period if the discount rate is 4 percent?
Discounted payback period
c. What is the discounted payback period if the discount rate is 20 percent?
Discounted payback period
Transcribed Image Text:An investment project costs $15,300 and has annual cash flows of $3,700 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period b. What is the discounted payback period if the discount rate is 4 percent? Discounted payback period c. What is the discounted payback period if the discount rate is 20 percent? Discounted payback period
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