Following table shows the initial investment required in and cash flow (return) from a project Expected cash flow (Crore Taka) Year Initial Investment (Crore Taka) 190 1 110 2 93 3 95 4 89 The expected payback period from the project is 2 years and the discount rate is 14%. Based on the Discounted Payback Period, will you accept the project? 2.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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2.
Following table shows the initial investment required in and cash flow (return) from a project
Expected cash flow
(Crore Taka)
Year
Initial Investment
(Crore Taka)
190
1
110
93
3
95
4
89
The expected payback period from the project is 2 years and the discount rate is 14%. Based on
the Discounted Payback Period, will you accept the project?
Transcribed Image Text:2. Following table shows the initial investment required in and cash flow (return) from a project Expected cash flow (Crore Taka) Year Initial Investment (Crore Taka) 190 1 110 93 3 95 4 89 The expected payback period from the project is 2 years and the discount rate is 14%. Based on the Discounted Payback Period, will you accept the project?
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