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Problem:

An investment project has annual cash inflows of $3,800, $4,700, $5,900, and $5,100, and a discount rate of 14 percent.

Required:

Question 1: What is the discounted payback period for these cash flows if the initial cost is $6,500?

Question 2: What is the discounted payback period for these cash flows if the initial cost is $8,600?

Question 3: What is the discounted payback period for these cash flows if the initial cost is $11,600?

Note: Please explain comprehensively and give step by step solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162510

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