A project has the following cash flows. Cash flows are paid at year-end.
Year CF
2017 -$200
2018 +$80
2019 +$80
2020 +$80
2021 +$80
What is the payback period if the opportunity cost of capital (OCC) is 11%?
3,5,4, or 2 years?
Payback period = Cost / CF per year
Payback period = $200/$80
Payback period = 2.5 years
A project has the following cash flows. Cash flows are paid at year-end. Year CF 2017...
A project has the following cash flows. Cash flows are paid at year-end. Year CF 2017 - $200 2018 +$80 2019 +$80 2020 +$80 2021 +$80 What is the payback period if the opportunity cost of capital (OCC) is 11%? 4.0 years 3.0 years 5.0 years 2.0 years What's the profitability index of the project in Question 5, if the opportunity cost of capital is 11%? 0.241 0.5 0.19 0.452
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