Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an investment project costs $20,500 and has annual

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

50.1K

Verified Solution

Question

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?

Answer & Explanation Solved by verified expert
4.4 Ratings (815 Votes)
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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

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?

Other questions asked by students

Q

Explain what a meta-analysis is (i.e., what is a meta-analysis in terms of effect sizes).

Basic Math
Q

A solution contains Al 3 + and Co 2 + . The addition of 0.3488...

Chemistry
Q

I have been one acquainted with the night. I have walked out in rain—and back in...

Psychology
Q

Let M be the integer corresponding to the first letter of your last name. For example,...

Advance Math
Q

Compare global, national, and local approaches to maximize innovation and creativity in IT projects. In your opinion,...

General Management
Q

Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...

Accounting
Q

In most Native American societies women were granted greater access to equality in all areas...

Biology
Q

7 7 In a biochemistry laboratory a student added ammonium sulfate to a tube containing...

Biology
Q

The electrical force like the bodies force decreases inversely as the square of the distance...

Physics
Q

A client purchases a Truck for $75,000 and estimates it will be useful...

Accounting
Q

ABC Corporation processes a single type of steel. For the current period the following information...

Accounting
Q

Good morning. I find it interesting that you mention the perpetual inventory making errors. Do...

Accounting