If a project costs $120,000 and is expected to return $29,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at /= 16%? Assume that the cash flows occur continuously throughout the year. The payback period is years. (Round to one decimal place.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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If a project costs $120,000 and is expected to return $29,000 annually, how long does it take to recover the initial
investment? What would be the discounted payback period at /= 16%? Assume that the cash flows occur
continuously throughout the year.
The payback period is years. (Round to one decimal place.)
Transcribed Image Text:If a project costs $120,000 and is expected to return $29,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at /= 16%? Assume that the cash flows occur continuously throughout the year. The payback period is years. (Round to one decimal place.)
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