In: Finance
An investment project costs $10,000 and has annual cash flows of $2,930 for six years. |
What is the discounted payback period if the discount rate is zero percent? What is the discounted payback period if the discount rate is 5 percent? What is the discounted payback period if the discount rate is 19 percent? |
a) zero per cent
b) 5%
c) 19%
The costs will not be recovered by 6 years if discounted at 19%.