An investment project has annual cash inflows of $4,900, $3,400, $4,600, and $3,800, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,200? (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 $7,300? (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 $10,300? (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

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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An investment project has annual cash inflows of $4,900, $3,400, $4,600, and $3,800,
for the next four years, respectively. The discount rate is 13 percent.
a. What is the discounted payback period for these cash flows if the initial cost is
$5,200? (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
$7,300? (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
$10,300? (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 $4,900, $3,400, $4,600, and $3,800, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,200? (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 $7,300? (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 $10,300? (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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ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College