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Fernando Designs is considering a project that has the following cash flow and WACC data. What...

Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 Cash flows -$650 $500 $500 $500

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Discounted PBP
Time Amount PVf at 10% PV Cumulative
                                                                            -                (650.00)                    1.0000                    (650.00)              (650.00)
                                                                       1.00                 500.00                    0.9091                       454.55              (195.45)
                                                                       2.00                 500.00                    0.8264                       413.22                 217.77
                                                                       3.00                 500.00                    0.7513                       375.66                 593.43
PBP = 1 + 195.45/413.22
PBP = 1 + .47 Years
PBP = 1.47 Years

jeff jeffy answered 3 years ago
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