PH Manufacturing Company uses discounted payback periodto evaluate investments in capital assets. The company expectsthe following annual cash flows from an investment of$3,500,000.No salvage/residual value isexpected.The company's cost of capital is12%.Required:a) Compute discounted paybackperiod of the investment, withnumber of years and monthsb)ls the investment desirable ifthe required payback period is4 years of less?YearCash Flow$ (3,500,000)1900,000900,0003900,0004900,000YrPVCPV@12%5900,0001900,0007900,0008.900,0002)2.

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Description: PH Manufacturing Company uses discounted payback periodto evaluate investments in capital assets. The company expectsthe following annual cash flows from an investment of$3,500,000.No salvage/residual value isexpected.The company's cost of capital i

Using excel for discounted payback period.

Answered: No salvage/residual v expected. The…

Business

Accounting

No salvage/residual v expected. The company's cost 12%. Deguiredd.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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