Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR, 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: O a. 1.44 years O b. None of these Oc. 1.63 years O d. 2.82 years O e. 1.81 years
Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR, 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: O a. 1.44 years O b. None of these Oc. 1.63 years O d. 2.82 years O e. 1.81 years
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 7PROB
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