Question
In: Finance
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: 0...
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows:
|
0 |
- 210 |
million |
|
1 |
95 |
million |
|
2 |
75 |
million |
|
3 |
95 |
million |
|
4 |
90 |
million |
If the project's appropriate discount rate is 11 percent, what is the project's discounted payback period? The project's discounted payback period is _____years.
Solutions
Expert Solution
| Discounted payback | 2.91 years |
We first compute the discounted cash flows and cumulative CF a below
| Year | cash flow (Million USD) | Dscounted cash flow | Cumulative DCF |
| 0 | -210 | -210 | -210 |
| 1 | 95 | 85.5856 | -124.4144 |
| 2 | 75 | 60.8717 | -63.5427 |
| 3 | 95 | 69.4632 | 5.9204 |
| 4 | 90 | 59.2858 | 65.2062 |
WORKINGS
jeff jeffy answered 6 months agoRelated Solutions
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows:...
(Discounted payback period) Gio's Restaurants is considering
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project's appropriate discount rate is 11 percent, what is the
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(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows:...
(Discounted payback period) Gio's Restaurants is considering
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(Discounted payback period) Gio's Restaurants is considering a project with the following expected free cash flows:...
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If the project's appropriate discount rate is 9 percent, what is
the project's discounted payback period? The project's
discounted payback period is nothing years.YEAR PROJECT CASH FLOW 0
-150 1 85 2 80 3 80 4 100
Gio's Restaurants is considering a project with the following expected cash flows: . If the project's...
Gio's Restaurants is considering a project with the following
expected cash flows: . If the project's appropriate discount rate
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period?
YEAR
PROJECT
CASH FLOW
0
−$240240
million
1
100100
million
2
6060
million
3
100100
million
4
100100
million
Gio's Restaurants is considering a project with the following expected cash flows: LOADING.... If the project's...
Gio's Restaurants is considering a project with the following
expected cash flows: LOADING.... If the project's appropriate
discount rate is 11 percent, what is the project's discounted
payback period?
YEAR PROJECT CASH FLOW
0 $210 million
1 90 million
2 60 million
3 85 million
4 100 million
Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow...
Gio's Restaurants is considering a project with the following
expected cash flows:
Year
Project Cash Flow (millions)
0
$(180)
1
80
2
75
3
80
4
95
If the project's appropriate discount rate is 12 percent, what
is the project's discounted payback period?
The project's discounted payback period is ___
years.
(Discounted payback period) You are considering a project with the following cash flows: YEAR PROJECT CASH...
(Discounted payback period) You are considering a project with
the following cash flows:
YEAR PROJECT
CASH FLOW
0 -40,000
1 15,000
2 15,000
3 15,000
4 15,000
If the appropriate discount rate is 12 percent, what is the
project's discounted payback period?
The project's discounted payback period is ___ years. (Round to
two decimal places.)
What is the discounted payback period for the investment project that has the following cash flows,...
What is the discounted payback period for the investment project
that has the following cash flows, if the discount rate is 14
percent? (Do not round intermediate calculations and round your
final answer to 2 decimal places. (e.g., 32.16)) Year Cash
Flows
0 -13779
1 4470
2 5005
3 5877
4 6626
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Find the discounted payback period for the following cash flows. Year Cash Flow 0 -450,000 1...
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flows.
Year
Cash Flow
0
-450,000
1
135,000
2
155,000
3
165,000
4
200,000
Assume a discount rate of 9%.
Round your answer to two decimal places.
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