Assessing investments: Extra exercises
Extra exercises
A corporation invests #16# million euros in a project on 1-1-2013. Subsequently, the net cash flows for #29# years, received always at the end of each year, are structured as follows: for the first #20# years #0.9# million euros per year and then for the next #9# years #1.5# million euros per year.
The discount rate is #5#% per year. The residual value of the project is #1.2# million euros. The net cash flow at the end of the final year includes this residual value.
Calculate the accounting payback period (APP). Round your answer to a whole number.
| #APP=# |
Unlock full access
Teacher access
Request a demo account. We will help you get started with our digital learning environment.
