An investment project has annual cash inflows of $3,300, $4,200, $5,400, and $4,600. for the next four years, respectively. The discount rate is 15 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,100? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $11.100? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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An investment project has annual cash inflows of $3,300, $4,200, $5,400, and $4,600.
for the next four years, respectively. The discount rate is 15 percent.
a. What is the discounted payback period for these cash flows if the initial cost is
$6,000? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
b. What is the discounted payback period for these cash flows if the initial cost is $8,100?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
c. What is the discounted payback period for these cash flows if the initial cost is
$11,100? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
a. Discounted payback period
b. Discounted payback period
c. Discounted payback period
years
years
years
Transcribed Image Text:An investment project has annual cash inflows of $3,300, $4,200, $5,400, and $4,600. for the next four years, respectively. The discount rate is 15 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,100? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $11,100? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period b. Discounted payback period c. Discounted payback period years years years
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