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Acme Mfg is considering two projects, A & B, with cash flows as shown below:               period                 CFA                  CFB                 0                  -50,000            -100,000                 1                  20,000               60,000                 2                   20,000               25,000                 3                  20,000               25,000                 4                  20,000               25,000   The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent. What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal places

Acme Mfg is considering two projects, A & B, with cash flows as shown below:               period                 CFA                  CFB                 0                  -50,000            -100,000                 1                  20,000               60,000                 2                   20,000               25,000                 3                  20,000               25,000                 4                  20,000               25,000   The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent. What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal places

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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Acme Mfg is considering two projects, A & B, with cash flows as shown below:

 

            period                 CFA                  CFB

                0                  -50,000            -100,000

                1                  20,000               60,000

                2                   20,000               25,000

                3                  20,000               25,000

                4                  20,000               25,000

 

The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent.

What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal places

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