Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...

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Finance

Compute the discounted payback statistic for Project C if theappropriate cost of capital is 8 percent and the maximum allowablediscounted payback period is three years. (Do not roundintermediate calculations and round your final answer to 2 decimalplaces.) Project C Time: 0 1 2 3 4 5 Cash flow: –$2,200 $960 $840$880 $540 $340

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Ans 2.85 years

Year	Project Cash Flows (i)		DF@ 8% (ii)	PV of Project A ( (i) * (ii) )	Cumulative Cash Flow
0	-2200		1	(2,200.00)	(2,200.00)
1	960		0.926	888.89	(1,311.11)
2	840		0.857	720.16	(590.95)
3	880		0.794	698.57	107.63
4	540		0.735	396.92	504.54
5	340		0.681	231.40	735.94
		NPV		735.94


Discounted Payback Period =		2 years + 590.95 / 698.57
		2.85 years

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Compute the discounted payback statistic for Project C if theappropriate cost of capital is 8 percent and the maximum allowablediscounted payback period is three years. (Do not roundintermediate calculations and round your final answer to 2 decimalplaces.) Project C Time: 0 1 2 3 4 5 Cash flow: –$2,200 $960 $840$880 $540 $340

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...

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