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:–$2,400$1,040$900$940$580$380

Should the project be accepted or rejected?

Discounted payback period______ years

  • accepted

  • rejected

Answer & Explanation Solved by verified expert
4.2 Ratings (537 Votes)
Discounted Payback Period for the Project C Year Cash Flows Present Value Factor at 7 Discounted Cash Flow Cumulative net discounted Cash flow 0 240000 1000000 240000    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:–$2,400$1,040$900$940$580$380Should the project be accepted or rejected?Discounted payback period______ yearsacceptedrejected

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