An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 11 percent. a) What is the discounted payback period for these cash flows if the initial cost is $8.000? b) What is the discounted payback period for these cash flows if the initial cost is $12,000? c) What is the discounted payback period for these cash flows if the initial cost is $16,000?

An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 11 percent. a) What is the discounted payback period for these cash flows if the initial cost is $8.000? b) What is the discounted payback period for these cash flows if the initial cost is $12,000? c) What is the discounted payback period for these cash flows if the initial cost is $16,000?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...

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