Target Corporation (TGT) is considering a new delivery system that costs $194,875. Assume a required rate of return of 4.26% and thefollowing cash flow schedule:Year 1: $46,608.Year 2: $70,559Year 3: $95,705Year 4: $11,450The project's discounted payback period (DPP) is closest toO A. 2.08 years.OB. 2.19 years.OC. 2.31 years.COD. 2.44 years.

Step 1: Calculate the Present Value (PV) of each year's cash flow.Use the formula:PV = Cash Flow /…

Answered: Target Corporation (TGT) is considering…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 21BEA

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