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Project's discounted payback

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Maxwell Food is considering a project that has the following cash flow data. What is the project's IRR?

Year 0 1 2 3 4 5
Cash flows -$9,500 $2,000 $2,025 $2,050 $2,075 $2,100

Oranges Inc. is considering a project that has the following cash flow and Cost of Capital data. What is the project's discounted payback?

Cost of Capital: 10.00%
Year 0 1 2 3 4
Cash flows -$950 $525 $485 $445 $405

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Solution discusses project's discounted payback

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See Also This Related BrainMass Solution

Calculating the Project's Discounted Payback

Coughlin Motors is considering a project with the following expected cash flows: .
Year Project Cash Flow
0 -$700 million
1 200 million
2 370 million
3 325 million
4 700 million

The project's WACC is 10 percent. What is the project's discounted payback?

Below are your choices:

3.15 years

4.09 years

1.62 years

2.58 years

3.09 years.

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