If a project costs $100 comma 000100,000 and is expected to return $27 comma 00027,000 annually, how long does it take to rec

Question

3 years ago

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If a project costs $100 comma 000100,000 and is expected to return $27 comma 00027,000 annually, how long does it take to rec

over the initial investment? what would be the discounted payback period at iequals=1212%? assume that the cash flows occur continuously throughout the year.

Business

1 answer:

stealth61 [152] · Answer 1 · 2022-08-28T08:27:17+03:00

stealth61 [152]3 years ago

5 0

The formula for discounted payback period is DPP = -ln (1 – Id/C) / ln (1+d), wherein I is the initial investment, d is the discount rate, and C is the cash flow. Substituting values, DPP = - ln(1-((0.12)($100)/$27)) / ln(1+0.12). Therefore, DDP is equal to 5.19 years.

If a project costs ​$100 comma 000100,000 and is expected to return ​$27 comma 00027,000 ​annually, how long does it take to rec

If a project costs $100 comma 000100,000 and is expected to return $27 comma 00027,000 annually, how long does it take to rec