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A compnay uses discounted payback period for small value projects and has a cut off period of 4 years. (The company cons
Posted: Mon Jan 17, 2022 8:09 am
by answerhappygod
- A Compnay Uses Discounted Payback Period For Small Value Projects And Has A Cut Off Period Of 4 Years The Company Cons 1 (24.13 KiB) Viewed 40 times
A compnay uses discounted payback period for small value projects and has a cut off period of 4 years. (The
company considers any project which has less investment value than $100,000 a small value project). An investment project is under consideration, the anticipated cash flow for this project is listed below. If this
company uses a 16% discount rate on this project would it be accepted or rejected? (If the project pays itself back in 4 years it will be accepted, if not, it will be rejected). Cash Flows Initial Cost Cash flow year one Cash flow year two Cash flow year three Cash flow year four ($30.000) $9.000 $10.000 $11.000 $13.000