The conventional payback period ignores the time value of money, and this concerns Green Caterpillar's CFO. He hwas now asked you to compute Alpha's discounted payback period, assuming the company has a 10% cost of capital. Year 0 Year 1 Year 2 Year 3
Cash flow -5,000,000 2,000,000 4,250,000 1,750,000
Discounted cash flow ? ? ? ?
Cumulated discounted cash flow ? ? ? ?
Discounted payback period ?

Required:
How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency?

How did the contribution of the goods producing sector to gdp growth change between 2010 and 2011 a. it fell by 0.3%. b. it fell by 2.3%. c. it rose by 2.3%. d. it rose by 0.6%. the answer is b

Bayside coatings company purchased waterproofing equipment on january 2, 20y4, for $190,000. the equipment was expected to have a useful life of four years and a residual value of $9,000. instructions: determine the amount of depreciation expense for the years ended december 31, 20y4, 20y5, 20y6, and 20y7, by (a) the straight-line method and (b) the double-declining-balance method. also determine the total depreciation expense for the four years by each method. depreciation expense year straight-line method double-declining-balance method 20y4 $ $ 20y5 20y6 20y7 total $

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?