Author Question: Your firm is considering an investment that will cost 750,000 today. The investment will produce ... (Read 70 times)

chads108

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Your firm is considering an investment that will cost 750,000 today. The investment will produce
  cash flows of 250,000 in year 1, 300,000 in years 2 through 4, and 100,000 in year 5.
 
  What is the
  investment's discounted payback period if the required rate of return is 10?
  A) 3.33 years B) 3.16 years C) 2.33 years D) 2.67 years

Question 2

A company that sells preferred stock and uses the money to pay off a loan is decreasing its amount
  of financial leverage.
 
  Indicate whether the statement is true or false


LVPMS

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Answer to Question 1

B

Answer to Question 2

FALSE



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