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28 Sep 2019
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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.
Time: 0 1 2 3 4 5 6 Cash flow â$4,500 $1,150 $2,350 $1,550 $1,550 $1,350 $1,150
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)
Discounted payback years
Should it be accepted or rejected?
Rejected Accepted
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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. |
Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | â$4,500 | $1,150 | $2,350 | $1,550 | $1,550 | $1,350 | $1,150 |
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
Discounted payback | years |
Should it be accepted or rejected? |
|
Deanna HettingerLv2
28 Sep 2019