Ask Question
BusinessBusiness
23 July, 18:30

If a project costs $100 comma 000100,000 and is expected to return $27 comma 00027,000 annually, how long does it take to recover the initial investment? what would be the discounted payback period at iequals=1212 %? assume that the cash flows occur continuously throughout the year.

+2
Answers (1)
  1. 23 July, 18:47
    0
    The formula for discounted payback period is DPP = - ln (1 - Id/C) / ln (1+d), wherein I is the initial investment, d is the discount rate, and C is the cash flow. Substituting values, DPP = - ln (1 - ((0.12) ($100) / $27)) / ln (1+0.12). Therefore, DDP is equal to 5.19 years.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If a project costs $100 comma 000100,000 and is expected to return $27 comma 00027,000 annually, how long does it take to recover the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Ted's Manufacturing makes two products, B and C. They each take 2 direct labor hours and 2 machine hours to produce.
Answers (1)
Uncertainty about interest-rate movements and returns is called Question 3 options: A) market potential. B) interest-rate irregularities. C) interest-rate risk. D) financial creativity.
Answers (1)
A small geographic area from which voters are assignd a voting location is a
Answers (1)
You were recently hired at a software engineering company, and today is your first team meeting. You want to convey to your new team members that you are excited to join them and that you will be an engaged and respectful addition to the team.
Answers (1)
For the month of June, Mae Green budgeted the following amounts: $180 for food, $475 for rent, $15 for transportation, $50 for insurance, $65 for utilities, $25 for a gift for her sister, $150 for a car payment, and $30 for clothing.
Answers (1)
New Questions in Business
If a manager increases the system utilization standard (assuming no change in the customer arrival rate) what happens to the average customer time in the system? A. It increases exponentially. B. It increases proportionally. C.
Answers (1)
Let a be the event that a student is enrolled in an accounting course, and let s be the event that a student is enrolled in a statistics course.
Answers (1)
Blaser Corporation had $1,075,000 in invested assets, sales of $1,243,000, income from operations amounting to $216,000 and a desired minimum rate of return of 13%. The rate of return on investment for Blaser Corporation is
Answers (2)
Re-Up Enterprises has sales of $926,355, costs of goods sold of $613,500, inventory of $189,880, and accounts receivable of $78,580. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?
Answers (1)
Which of the following is one of the main things to consider when evaluating a business opportunity?
Answers (1)
Home » Business » If a project costs $100 comma 000100,000 and is expected to return $27 comma 00027,000 annually, how long does it take to recover the initial investment? what would be the discounted payback period at iequals=1212 %?
Sign Up Forgot Password?