Project L requires an initial outlay at t = 0 of $25,000, its expected cash inflows...

60.1K

Verified Solution

Question

Finance

Project L requires an initial outlay at t = 0 of $25,000, itsexpected cash inflows are $5,000 per year for 9 years, and its WACCis 11%. What is the project's discounted payback? Do not roundintermediate calculations. Round your answer to two decimalplaces.

  years

Answer & Explanation Solved by verified expert
3.8 Ratings (533 Votes)
Present value of year 1 cash flow 5000 1 0111 45045045 Present value of year 2 cash flow 5000 1 0112 40581122 Present value of year 3 cash flow 5000 1 0113 36559569 Present value of year 4 cash flow 5000 1 0114    See Answer
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

Project L requires an initial outlay at t = 0 of $25,000, itsexpected cash inflows are $5,000 per year for 9 years, and its WACCis 11%. What is the project's discounted payback? Do not roundintermediate calculations. Round your answer to two decimalplaces.  years

Other questions asked by students