Compute the discounted payback statistic for Project D if the appropriate cost o
ID: 2787454 • Letter: C
Question
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations. Round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations. Round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)
Explanation / Answer
Project should be rejected Discounted PBP Time Amount PVf PV Cumulative - (12,200.00) 1.00 (12,200.00) (12,200.00) 1.00 3,470.00 0.8929 3,098.21 (9,101.79) 2.00 4,420.00 0.7972 3,523.60 (5,578.19) 3.00 1,760.00 0.7118 1,252.73 (4,325.46) 4.00 - 0.6355 - (4,325.46) 4.00 1,240.00 0.5674 703.61 (3,621.85) Discounted Paybck period cannot be determined as Total cash inflow is less than cash outflow
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