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. 1.81 years O c. 2.82 years O d. None of these O e. 1.63 years

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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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. 1.81 years
O c. 2.82 years
O d. None of these
O e. 1.63 years
Transcribed Image Text: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. 1.81 years O c. 2.82 years O d. None of these O e. 1.63 years
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