Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. (discounted payback period?) ? gio's restaurants i

(Discounted payback period?) ? Gio's Restaurants is considering a project with the following expected cash? flows:...

Free

60.1K

Verified Solution

Question

Finance

(Discounted payback period?) ? Gio's Restaurants is consideringa project with the following expected cash? flows: Year ProjectCash Flow? (millions) 0 ?$(150?) 1 90 2 70 3 90 4 100 If the?project's appropriate discount rate is 12 ?percent, what is the?project's discounted payback? period? The? project's discountedpayback period is nothing years.???(Round to two decimal?places.)

Answer & Explanation Solved by verified expert
4.0 Ratings (734 Votes)

Ans 2.22 years

Year Project Cash Flows (i) DF@ 12% (ii) PV of Project A ( (i) * (ii) ) Cumulative Cash Flow
0 -150 1                                (150.00)                   (150.00)
1 90 0.893                                    80.36                     (69.64)
2 70 0.797                                    55.80                     (13.84)
3 90 0.712                                    64.06                       50.22
4 100 0.636                                    63.55                     113.77
TOTAL                                  113.77
Discounted Payback Period = 2 years + 13.84/64.06
2.22 YEARS

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

(Discounted payback period?) ? Gio's Restaurants is consideringa project with the following expected cash? flows: Year ProjectCash Flow? (millions) 0 ?$(150?) 1 90 2 70 3 90 4 100 If the?project's appropriate discount rate is 12 ?percent, what is the?project's discounted payback? period? The? project's discountedpayback period is nothing years.???(Round to two decimal?places.)

Other questions asked by students

Q

4. We describe locations on the Earth using latitude and longitude 8. Using these coordinates,...

Geometry
Q

unlike what occurs when fuel is burned to make a fire, all living systems use the...

Biology
Q

A 60 kg Drum of diameter 40 cm containing waste material of density 1100 kg/m^3 is...

Mechanical Engineering
Q

A finite ladder is constructed by connecting several section of 3 F 6 F capacitor...

Physics
Q

2 Determine the unknown length Round to the nearest hundredth 60 6 ft

Geometry
Q

3 Find the inverse function of 4 2 x f x

Calculus
Q

lim f x x X X Left hand limit atx x lim f x lim...

Algebra
Q

Black Corporation and Tom each own 50% of Tan Corporations common stock....

Accounting
Q

Provo Corporation, a U.S. corporation, received a dividend of $350,000 from its 100 percent owned...

Accounting
Q

At January 1 (beginning of its fiscal year). Freeman, Incorporated, a financial services consulting firm,...

Accounting
Q

Required information [The following information applies to the questions displayed below) Morganton Company makes one...

Accounting
Q

A company has a 12 % WACC and is considering two mutually exclusive investments (that...

Finance