Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project overthe next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for suchprojects is 10 percent. What is the project's discounted payback period?Select one:a. 1.81 yearsO b. None of theseOc. 1.44 yearsOd. 1.63 yearsO e. 2.82 years

In the payback period method, the time value of money is not taken into consideration in order to…

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/hat is the project's discounted payback period?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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Question

Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over
the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such
projects is 10 percent. What is the project's discounted payback period?
Select one:
a. 1.81 years
O b. None of these
Oc. 1.44 years
Od. 1.63 years
O e. 2.82 years

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