An investment project has annual cash inflows of $4,100, $5,000, $6,200, and $5,400, for the next four years, respectively. The discount rate is 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $11,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period b. Discounted payback period c. Discounted payback period years years years

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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An investment project has annual cash inflows of $4,100, $5,000, $6,200, and $5,400,
for the next four years, respectively. The discount rate is 14 percent.
a. What is the discounted payback period for these cash flows if the initial cost is
$6,800? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
b. What is the discounted payback period for these cash flows if the initial cost is
$8,900? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
c. What is the discounted payback period for these cash flows if the initial cost is
$11,900? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
a. Discounted payback period
b. Discounted payback period
years
years
Discounted payback period
years
C.
Transcribed Image Text:An investment project has annual cash inflows of $4,100, $5,000, $6,200, and $5,400, for the next four years, respectively. The discount rate is 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $11,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period b. Discounted payback period years years Discounted payback period years C.
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ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College