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An investment project costs $20,500 and has annual cash flows of $4,300 for six years. Required...

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Finance

An investment project costs $20,500 and has annual cash flows of$4,300 for six years. Required : (a) What is the discounted paybackperiod if the discount rate is zero percent? (b) What is thediscounted payback period if the discount rate is 3 percent? (c)What is the discounted payback period if the discount rate is 19percent?

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a What is the discounted payback period if the discount rate is zero percent Year 0 1 2 3 4 5 6 Cashflowin 20500 4300 4300 4300 4300 4300 4300 PVF 0 1 1000 1000 1000 1000 1000 1000 Discounted Cashflow Cash flow PVF 20500 4300 4300 4300 4300 4300 4300 Cumulative Cashflowin 20500 16200 11900    See Answer
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An investment project costs $20,500 and has annual cash flows of$4,300 for six years. Required : (a) What is the discounted paybackperiod if the discount rate is zero percent? (b) What is thediscounted payback period if the discount rate is 3 percent? (c)What is the discounted payback period if the discount rate is 19percent?

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