Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Please provide the Payback period and Discounted Payback Period:

 

 

QUESTION 26
Using the information in the table below calculate the Payback Period AND Discounted Payback Period for Project 1 (in years).
Project 1
Years
1
2
4
Cash Flow
-5000
500
2000
3000
1000
Cumulative Cash Flow
-5000
-4500
-2500
500
1500
WACC
15%
Years
1
3
4
Cash Flow
-5000
500
2000
3000
1000
Discounted Cash Flow
-5000
434.78
1739.13
2608.70
869.57
Cumulative Discounted Cash Flow
-5000
-4565.22
-2826.09
-217.39
652.17
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Transcribed Image Text:QUESTION 26 Using the information in the table below calculate the Payback Period AND Discounted Payback Period for Project 1 (in years). Project 1 Years 1 2 4 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500 1500 WACC 15% Years 1 3 4 Cash Flow -5000 500 2000 3000 1000 Discounted Cash Flow -5000 434.78 1739.13 2608.70 869.57 Cumulative Discounted Cash Flow -5000 -4565.22 -2826.09 -217.39 652.17 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 14px A Ix Ex:
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