Note: Question 12, 13, 14 and 15 are based on the same two projects A and B. Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. Firm uses 4.9...


Note: Question 12, 13, 14 and 15 are based on the same<br>two projects A and B.<br>Your firm has estimated the following cash flows for two<br>mutually exclusive capital investment projects. Firm uses<br>4.9 years as the cutoff for the discounted payback period.<br>The firm's required rate of return is 11%.<br>What is the discounted payback period of project A?<br>Project A Cash Flow<br>Year<br>Project B Cash Flow<br>-$80,000<br>-$180,000<br>1<br>$23,000<br>$53,000<br>2<br>$23,000<br>$53,000<br>3<br>$23,000<br>$47,000<br>4<br>$20,000<br>$47,000<br>5<br>$20,000<br>$40,000<br>6<br>$20,000<br>$27,000<br>5.90<br>5.26<br>5.01<br>O 4.61<br>4.89<br>

Extracted text: Note: Question 12, 13, 14 and 15 are based on the same two projects A and B. Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. Firm uses 4.9 years as the cutoff for the discounted payback period. The firm's required rate of return is 11%. What is the discounted payback period of project A? Project A Cash Flow Year Project B Cash Flow -$80,000 -$180,000 1 $23,000 $53,000 2 $23,000 $53,000 3 $23,000 $47,000 4 $20,000 $47,000 5 $20,000 $40,000 6 $20,000 $27,000 5.90 5.26 5.01 O 4.61 4.89

Jun 11, 2022
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