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An investment project has annual cash inflows of $5,400, $6,500, $7,300 for the next four years,...

An investment project has annual cash inflows of $5,400, $6,500, $7,300 for the next four years, respectively, and $8,600, and a discount rate of 10 percent. What is the discounted payback period for these cash flows if the initial cost is $9,000?

  • 1.76 years

  • 2.51 years

  • 0.76 years

  • 1.26 years

  • 3.52 years

0 0
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Answer #1

Cash flow P.V.Factor Discounted C.F Cumulative cash flows (9,000) (4,091) Year (9,000.00) 5,400.00 (9,000) 0 1 1 0.909090909

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