A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year...

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A project has an initial cost of $52,125, expected net cashinflows of $12,000 per year for 7 years, and a cost of capital of12%. What is the project's discounted payback period? (Hint: Beginby constructing a time line.) Do not round intermediatecalculations. Round your answer to two decimal places.

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Present value of year 1 cash flow 12000 1 012 1071428571 Present value of year 2 cash flow 12000 1 0122 956632653 Present value of year 3 cash flow 12000 1 0123 854136297 Present value of See Answer

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A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year...

70.2K

Verified Solution

Question

Finance

A project has an initial cost of $52,125, expected net cashinflows of $12,000 per year for 7 years, and a cost of capital of12%. What is the project's discounted payback period? (Hint: Beginby constructing a time line.) Do not round intermediatecalculations. Round your answer to two decimal places.

Answer & Explanation Solved by verified expert

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