Firm Xy has an investment project with annual cash flows of 20,000, 18,500, 21,500, and 12,350. The discount rate is 11.55%.   What is the nominal payback period if the initial cost is 31,000?   what is the discounted payback period if the initial cost is $24,000?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Firm Xy has an investment project with annual cash flows of 20,000, 18,500, 21,500, and 12,350. The discount rate is 11.55%.

 

What is the nominal payback period if the initial cost is 31,000?

 

what is the discounted payback period if the initial cost is $24,000?

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