Lloyd Enterprises has a project which has the following cash flows: Year Cash Flow 0 -$200,000 1 50,000 2 100,000 3 150,000 4 40,000 5 25,000 The cost of capital is 20 percent. What is the project's discounted payback

Lloyd Enterprises has a project which has the following cash flows: Year Cash Flow 0 -$200,000 1 50,000 2 100,000 3 150,000 4 40,000 5 25,000 The cost of capital is 20 percent. What is the project's discounted payback

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 4CMA: Foster Manufacturing is analyzing a capital investment project that is forecast to produce the...

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Question

Lloyd Enterprises has a project which has the following cash flows:

Year Cash Flow

0 -$200,000
1 50,000
2 100,000
3 150,000
4 40,000
5 25,000

The cost of capital is 20 percent. What is the project's discounted payback

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