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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6.
Suppose your firm is considering investing in a project with the cash flows
shown below, that the required rate of return on projects of this risk class is
10 percent, and that the maximum allowable payback and discounted
payback statistics for your company are 3.0 and 3.5 years, respectively.
nts
Time:
1
2
3
4
5
Cash flow
$66,800 $85, 000 $142,000 $123,000 $82,200
$245,000
Print
Use the discounted payback decision rule to evaluate this project. (Do not
round intermediate calculations and round your final answer to 2
decimal places.)
eferences
Discounted payback
years
Should it be accepted or rejected?
O Rejected
О Ассеpted
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Transcribed Image Text:6. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 and 3.5 years, respectively. nts Time: 1 2 3 4 5 Cash flow $66,800 $85, 000 $142,000 $123,000 $82,200 $245,000 Print Use the discounted payback decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) eferences Discounted payback years Should it be accepted or rejected? O Rejected О Ассеpted
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