1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The management's discount rate is 12%. The amount 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? OA) 3,75 O B) 3,50 O C) 3,90 O D) 3,35 O E) 4,00

1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The management's discount rate is 12%. The amount 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? OA) 3,75 O B) 3,50 O C) 3,90 O D) 3,35 O E) 4,00

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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