Finance

Acme, Inc. is considering a four-year project that has an initial outl

Acme, Inc. is considering a four-year project that has an initial outlay or cost of $80,000. The respective future cash inflows for years 1, 2, 3 and 4 are: $40,000, $40,000, $30,000 and $30,000. Acme uses the discounted payback period method and has a discount rate of 12%. Will Acme accept the project if it’s […]

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Date: September 19th, 2020

The initial outlay or cost is $1,000,000 for a four-year project. The

The initial outlay or cost is $1,000,000 for a four-year project. The respective future cash inflows for years 1, 2, 3 and 4 are: $500,000, $300,000, $300,000 and $300,000. What is the payback period without discounting cash flows? A) About 2.50 years B) About 2.67 years C) About 3.67 years D) About 4.50 years   […]

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Date: September 19th, 2020

The initial outlay or cost for a four-year project is $1,000,000. The

The initial outlay or cost for a four-year project is $1,000,000. The respective cash inflows for years 1, 2, 3 and 4 are: $500,000, $300,000, $300,000 and $300,000. What is the discounted payback period if the discount rate is 10%? A) About 2.67 years B) About 3.35 years C) About 3.67 years D) About 4.50 […]

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Date: September 19th, 2020