An analyst at Stoneville Corporation estimates that a project has the following after-tax net cash flows: Cash Flows By Year Year Net Cash Flows (500,000) 1 170,000 2 180,000 170,000 4 80,000 50,000 6 50,000 If the company's cost of capital is 12%, the project's discounted payback period is closest to:

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...
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An analyst at Stoneville Corporation estimates that a project has the following
after-tax net cash flows:
Cash Flows By Year
Year
Net Cash Flows
(500,000)
1
170,000
2
180,000
170,000
4
80,000
50,000
50,000
If the company's cost of capital is 12%, the project's discounted payback period
is closest to:
Transcribed Image Text:An analyst at Stoneville Corporation estimates that a project has the following after-tax net cash flows: Cash Flows By Year Year Net Cash Flows (500,000) 1 170,000 2 180,000 170,000 4 80,000 50,000 50,000 If the company's cost of capital is 12%, the project's discounted payback period is closest to:
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