材料全屏 Diamond Ltd has a payback period limit of three years and is considering investing in one of the following projects. Both projects require an initial investment of $800,000. Cash inflows accrue evenly throughout the year. Project Alpha Project Beta Year Cash inflow Year Cash inflow $ $ 1 250,000 1 250,000 2 250,000 2 350,000 3 400,000 3 400,000 4 300,000 4 200,000 5 200,000 5 150,000 6 50,000 6 150,000 The company's cost of capital is 10%. 85 【单项选择题】 What is the non-discounted payback period of Project Beta?
A、2 years and 2 months
B、2 years and 4 months
C、2 years and 5 months
D、2 years and 6 months
A、2 years and 2 months
B、2 years and 4 months
C、2 years and 5 months
D、2 years and 6 months
【参考答案及解析】
The non-discounted payback period of Project Beta=2 years and 6 months Workings Project Beta Year Cash inflow Cumulative cash inflow $ $ 1 250,000 250,000 2 350,000 600,000 3 400,000 1,000,000 4 200,000 1,200,000 5 150,000 1,350,000 6 150,000 1,500,000 Project Beta has a payback period of between 2 and 3 years. 2 years and 6 months.Payback period = 2 years +$200,000 $400,000x 12 months= 2 years + 6 months
The non-discounted payback period of Project Beta=2 years and 6 months Workings Project Beta Year Cash inflow Cumulative cash inflow $ $ 1 250,000 250,000 2 350,000 600,000 3 400,000 1,000,000 4 200,000 1,200,000 5 150,000 1,350,000 6 150,000 1,500,000 Project Beta has a payback period of between 2 and 3 years. 2 years and 6 months.Payback period = 2 years +$200,000 $400,000x 12 months= 2 years + 6 months