Project Cash Flows A B C D -$2,500 -$6,000 -$13,000 -$14,500 1 $600 $2,500 $3,000 $6,000 $500 $1,000 $4,000 $9,000 3 $500 $1,500 $5,000 -$4,000 4 $700 $500 $6,000 $5,000 $800 $500 $7,000 $1,000 6. $400 $1,500 $2,000 7 $400 $3,000 8. $400
Project Cash Flows A B C D -$2,500 -$6,000 -$13,000 -$14,500 1 $600 $2,500 $3,000 $6,000 $500 $1,000 $4,000 $9,000 3 $500 $1,500 $5,000 -$4,000 4 $700 $500 $6,000 $5,000 $800 $500 $7,000 $1,000 6. $400 $1,500 $2,000 7 $400 $3,000 8. $400
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Consider the following cash flows, for four different projects: (given)
(a) Calculate the conventional payback period for each project.
(b) Determine whether it is meaningful to caJculate a payback period for Project D.
(c) Assuming i = I 0% calculate the discounted-payback period for each project.
Transcribed Image Text:Project Cash Flows
A
B
C
D
-$2,500
-$6,000
-$13,000
-$14,500
1
$600
$2,500
$3,000
$6,000
$500
$1,000
$4,000
$9,000
3
$500
$1,500
$5,000
-$4,000
4
$700
$500
$6,000
$5,000
$800
$500
$7,000
$1,000
6.
$400
$1,500
$2,000
7
$400
$3,000
8.
$400
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