An investment project costs $15,600 and has annual cash flows of $3,900 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period

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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c. What is the discounted payback period if the discount rate is 20 percent?
Discounted payback period
Transcribed Image Text:c. What is the discounted payback period if the discount rate is 20 percent? Discounted payback period
An investment project costs $15,600 and has annual cash flows of $3,900 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 6 percent?
Discounted payback period
Transcribed Image Text:An investment project costs $15,600 and has annual cash flows of $3,900 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 6 percent? Discounted payback period
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