Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Project C Time: 0 1 Cash flow: -$ 2,400 $ 1,040 Discounted payback period 3 2 $ 900 $ 940 2.93 years 4 $ 580 $ 380

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Project C Time: 0 1 Cash flow: -$ 2,400 $ 1,040 Discounted payback period 3 2 $ 900 $ 940 2.93 years 4 $ 580 $ 380

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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