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Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12...

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Finance

Compute the discounted payback statistic for Project D if theappropriate cost of capital is 12 percent and the maximum allowablediscounted payback is four years. (Do not roundintermediate calculations and round your final answer to 2 decimalplaces. If the project does not pay back, then enter a "0"(zero).)

Project D
Time:012345
Cash flow:–$12,400$3,490$4,460$1,800$0$1,280

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Since the amount cannot be recovered during the lifetime of the project.

Year Project Cash Flows (i) DF@ 12% (ii) PV of Project A ( (i) * (ii) ) Cumulative Cash Flow
0 -12400 1                           (12,400.00)              (12,400.00)
1 3490 0.893                              3,116.07                (9,283.93)
2 4460 0.797                              3,555.48                (5,728.44)
3 1800 0.712                              1,281.20                (4,447.24)
4 0 0.636                                           -                  (5,728.44)
5 1280 0.567                                  726.31                (3,720.93)
NPV                             (3,720.93)

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Compute the discounted payback statistic for Project D if theappropriate cost of capital is 12 percent and the maximum allowablediscounted payback is four years. (Do not roundintermediate calculations and round your final answer to 2 decimalplaces. If the project does not pay back, then enter a "0"(zero).)Project DTime:012345Cash flow:–$12,400$3,490$4,460$1,800$0$1,280

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