Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7...

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Finance

Compute the discounted payback statistic for Project C if theappropriate cost of capital is 7 percent and the maximum allowablediscounted payback period is three years.(Do not round intermediate calculationsand round your final answer to 2 decimal places.)

Project C
Time:012345
Cash flow:–$1,400$640$600$640$380$180

Should the project be accepted or rejected?

  • accepted

  • rejected

Answer & Explanation Solved by verified expert
3.9 Ratings (575 Votes)
Discounted payback period Discounted Payback period is nothing but the length of time taken for the initial cost of a project to equalise the discounted value of expected cashflows or the time taken to breakeven from the    See Answer
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Compute the discounted payback statistic for Project C if theappropriate cost of capital is 7 percent and the maximum allowablediscounted payback period is three years.(Do not round intermediate calculationsand round your final answer to 2 decimal places.)Project CTime:012345Cash flow:–$1,400$640$600$640$380$180Should the project be accepted or rejected?acceptedrejected

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