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Day Interiors is considering a project with the following cash flows. Calculate the Discounted Payback Period for this p...

Day Interiors is considering a project with the following cash flows. Calculate the Discounted Payback Period for this project
YEAR CASH FLOW 0 -114600 1 35900 2 50800 3 45000

rate is 20%

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Answer #1

rate positively .

i ii iii=ii*i iv
year cash flow PVIF @ 20% Discounted cash flow Cumulative discounted cash flow
0 -114600 1          (114,600)            (114,600)
1 35900 0.833333              29,917              (84,683)
2 50800 0.694444              35,278              (49,406)
3 45000 0.578704              26,042              (23,364)
since cumulative discounted cash flow are not positive. Therefore, firm will not have any discounted payback period.
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