Question 6 Given the following cash flows for a capital project, calculate its payback period...

60.1K

Verified Solution

Question

Finance

image

Question 6 Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent. The discounted payback period is 5 Cash flow ($) -50,000 15,000 15,000 20,000 10,000 5,000 Year 0 1 2 3 4 A. 0.16 years longer than the payback period. B. 0.80 years longer than the payback period. C. 1.01 years longer than the payback period. D. 1.85 years longer than the payback period

Answer & Explanation Solved by verified expert
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

Other questions asked by students