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%?

3.241 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $750,000

In year 1 = $250,000

In year 2 = $300,000

In year 3 = $300,000

In year 4 = $300,000

In year 5 = $100,000

And, the discounted rate of return is 10%

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,  

rate is 9%  

Year = 0,1,2,3,4 and so on

Discount Factor:

For Year 1 = 1 ÷ 1.10^1 = 0.9091

For Year 2 = 1 ÷ 1.10^2 = 0.8264

For Year 3 = 1 ÷ 1.10^3 = 0.7513

For Year 4 = 1 ÷ 1.10^4 = 0.6830

For Year 5 = 1 ÷ 1.10^5 = 0.6209

So after applying the discounting rate, the cash flows would be

In year 0 = $750,000

In year 1 = $250,000 × 0.909 = $227,250

In year 2 = $300,000  × 0.8264 = $247,920

In year 3 = $300,000  × 0.7513 = $225,390

In year 4 = $300,000  × 0.6830 = $204,900

In year 5 = $100,000  × 0.6209 = $62,090

If we sum the first 3 year cash inflows than it would be $700,560

Now we deduct the $700,560 from the $750,000 , so the amount would be $49,440 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $204,900

So, the payback period equal to

= 3 years + $49,440 ÷ $204,900

= 3.241 years

In 3.241 years, the invested amount is recovered.

idk sorry

explanation:

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know