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ziro4ka [17]
3 years ago
13

What is the discounted payback period for these cash flows if the initial cost is $11,800?

Business
1 answer:
valentinak56 [21]3 years ago
3 0
<span>C) initial cost = 11800 </span>

This time it will take you full 4 years

5300/1.13^4 = 3250.59

<span>14855.44 - 8800 = 3055.44 </span>

<span>cash required in year 4 = 3250.59 - 3055.44 = 195.15 </span>

<span>time required in year 4 = 195.15 / 3250.59 = 0.06 </span>

<span>Discounted payback period = year 1 + year 2 + year 3 + 0.06 = 3.06 years</span>
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