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An investment project costs $15,300 and has annual cash flows of $3,500 for six years.    Required : (a) What...

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Finance

An investment project costs $15,300 and has annual cash flowsof $3,500 for six years.

  

Required :
(a)What is the discounted payback period if the discount rate iszero percent?
(Click to select)4.724.284.024.464.37

  

(b)What is the discounted payback period if the discount rate is 3percent?
(Click to select)4.414.664.855.114.76

  

(c)What is the discounted payback period if the discount rate is21 percent?
(Click to select)3.353.98Never4.351.02

Answer & Explanation Solved by verified expert
4.2 Ratings (705 Votes)
We first computed the discounted cash flows as cash flows1ratenThen we find the cumulative discounted cash flowsDiscounted    See Answer
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Transcribed Image Text

An investment project costs $15,300 and has annual cash flowsof $3,500 for six years.  Required :(a)What is the discounted payback period if the discount rate iszero percent?(Click to select)4.724.284.024.464.37  (b)What is the discounted payback period if the discount rate is 3percent?(Click to select)4.414.664.855.114.76  (c)What is the discounted payback period if the discount rate is21 percent?(Click to select)3.353.98Never4.351.02

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