(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: Flex 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.)

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

Free

60.1K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students