Business, 14.08.2020 01:01 jsmith4184

Discounted payback period. Given the following two projects and their cash flows, LOADING..., calculate the discounted payback period with a discount rate of %, %, and %. What do you notice about the payback period as the discount rate rises? Explain this relationship. With a discount rate of %, the cash outflow for project A is:

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Answer from: isa6476

the numbers are missing, so I looked for a similar question:

Cash Flow A B

Cost $10,000 $105,000

Cash flow year 1 $3,571 $21,000

Cash flow year 2 $3,571 $10,500

Cash flow year 3 $3,571 $42,000

Cash flow year 4 $3,571 $31,500

Cash flow year 5 $3,571 $5,250

Cash flow year 6 $3,571 $0

With a discount rate of 5%, 10% & 15%

Discounted cash flows for project A:

5% 10% 15%

Cost $10,000

Cash flow year 1 $3,571 $3,401 $3,246 $3,105

Cash flow year 2 $3,571 $3,239 $2,951 $2,700

Cash flow year 3 $3,571 $3,085 $2,683 $2,348

Cash flow year 4 $3,571 $2,938 $2,439 $2,042

Cash flow year 5 $3,571 $2,798 $2,217 $1,775

Cash flow year 6 $3,571 $2,665 $2,016 $1,544

discounted payback period:

5% = 3.09 years

10% = 3.46 years

15% = 3.9 years

The higher the discount rate, the longer the discounted payback period.

Discounted cash flows for project B:

5% 10% 15%

Cost $105,000

Cash flow year 1 $21,000 $20,000 $19,091 $18,261

Cash flow year 2 $10,500 $9,524 $8,678 $7,940

Cash flow year 3 $42,000 $36,281 $31,555 $27,616

Cash flow year 4 $31,500 $25,915 $21,515 $18,010

Cash flow year 5 $5,250 $4,114 $3,260 $2,610

discounted payback period:

5% = more than 5 years, the project's NPV is negative -$9,166.37

10% = more than 5 years, the project's NPV is negative -$20,901.42

15% = more than 5 years, the project's NPV is negative -$30,563.54

Answer from: Quest

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

Answer from: Quest

3rd the reason why is because of management and leadership

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Discounted payback period. Given the following two projects and their cash flows, LOADING..., calcul...

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