What is the discounted payback period for the project assuming a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 15.25. If discounted payback period exceeds life of the project, enter 0 for the answer.)

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
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Problem 10.20
Nugent Communication Corp. is investing $9871,647 in new technologies. The company expects significant benefits in the first three years after installation (as can be seen by the
following cash flows), and smaller constant benefits in each of the next four years.
Year
1
3
4-7
Cash Flows
$2,015,329 $5,179,619
$2,934,922 $1,372,250
What is the discounted payback period for the project assuming a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 15.25. If discounted payback period
exceeds life of the project, enter 0 for the answer.)
The discounted payback period for the project is
years.
Click if you would like to Show Work for this question: Open Show Work
Transcribed Image Text:Problem 10.20 Nugent Communication Corp. is investing $9871,647 in new technologies. The company expects significant benefits in the first three years after installation (as can be seen by the following cash flows), and smaller constant benefits in each of the next four years. Year 1 3 4-7 Cash Flows $2,015,329 $5,179,619 $2,934,922 $1,372,250 What is the discounted payback period for the project assuming a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 15.25. If discounted payback period exceeds life of the project, enter 0 for the answer.) The discounted payback period for the project is years. Click if you would like to Show Work for this question: Open Show Work
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