1. Business
  2. Finance
  3. problem 138 discounted payback lg132 compute the discounted payback statistic...

Question: problem 138 discounted payback lg132 compute the discounted payback statistic...

Question details

Problem 13-8 Discounted Payback (LG13-2)

Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)

Project D
Time: 0 1 2 3 4 5
Cash flow: –$12,800 $3,530 $4,540 $1,880 $0 $1,360

Problem 13-8 Discounted Payback (LG13-2)

Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)

Project D
Time: 0 1 2 3 4 5
Cash flow: –$12,800 $3,530 $4,540 $1,880 $0 $1,360
discounted payback period                             years       

Should the project be accepted or rejected?

  • accepted

  • rejected

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution