Solved

Nouvel an S

Question 44

Multiple Choice

Nouvel An S.A. is considering a project that requires an initial investment of $51,000. It is expected to produce annual cash flows of $35,000, $25,000 and $15,000. What is the discounted payback period for this project if the discount rate is 12%?


A) approximately 1 year.
B) approximately 1.6 years.
C) approximately 2 years.
D) The project will never reach discounted payback.

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