Question 1 An initial amount of RM 2,000,000 is expected to generate RM 500,000 per year for 6 years. Calculate the discounted payback period of the amount if the discounted payback period is 11%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
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Question 1
An initial amount of RM 2,000,000 is expected to generate RM 500,000 per year for 6 years.
Calculate the discounted payback period of the amount if the discounted payback period is 11%.
Question 2
An initial investment of RM 50,000 is expected to generate RM 10,000 per year for 8 years.
Calculate the discounted payback period of the investment if the discount rate is 11%.
Year
1
2
3
4
5
6
7
8
Cash Flow (RM)
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Transcribed Image Text:Question 1 An initial amount of RM 2,000,000 is expected to generate RM 500,000 per year for 6 years. Calculate the discounted payback period of the amount if the discounted payback period is 11%. Question 2 An initial investment of RM 50,000 is expected to generate RM 10,000 per year for 8 years. Calculate the discounted payback period of the investment if the discount rate is 11%. Year 1 2 3 4 5 6 7 8 Cash Flow (RM) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
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