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 1 year agoRelated Solutions
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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 ___
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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
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The project's discounted payback period is ___ years. (Round to
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0
1
2
3
4
5
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