Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)   Project D             Time: 0 1 2 3 4 5 Cash flow: −$11,700 $3,420 $4,320 $1,660 $0 $1,140     Payback: ? Years

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
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Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)
 

Project D            
Time: 0 1 2 3 4 5
Cash flow: −$11,700 $3,420 $4,320 $1,660 $0 $1,140
 

 

Payback: ? Years
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