A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent. Year Cash flow (OMR) year 0= -39,000 year 1= 28,000 year 2= 19,000 year 3= 14,000 year 4= -12,000 year 5= 10,000 What is the discounted payback period for the project?
A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent. Year Cash flow (OMR) year 0= -39,000 year 1= 28,000 year 2= 19,000 year 3= 14,000 year 4= -12,000 year 5= 10,000 What is the discounted payback period for the project?
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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Question
A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent.
Year
Cash flow (OMR)
year 0= -39,000
year 1= 28,000
year 2= 19,000
year 3= 14,000
year 4= -12,000
year 5= 10,000
What is the discounted payback period for the project?
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