1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The management's discount rate is 12%. of cash inflows expected from the new investment are: Year-1 cash Inflow: $250,000 Year-2 cash Inflow: $400,000 Year-3 cash Inflow: $300,000 Year-4 cash Inflow: $200,000 What is discounted payback periods of the new investment? O A) 3,75 O B) 3,50 O C) 3.90

1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The management's discount rate is 12%. of cash inflows expected from the new investment are: Year-1 cash Inflow: $250,000 Year-2 cash Inflow: $400,000 Year-3 cash Inflow: $300,000 Year-4 cash Inflow: $200,000 What is discounted payback periods of the new investment? O A) 3,75 O B) 3,50 O C) 3.90

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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