10. Payback. A project that costs $2,500 to install will provide annual cash flows of $600 for...

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10. Payback. A project that costs $2,500 to install will provide annual cash flows of $600 for the next 6 years. The firm accepts projects with payback periods of less than 5 years. Will the project be accepted? Should this project be pursued if the discount rate is 2%? What if the discount rate is 12%? Will the firm's decision change as the discount rate changes? (L03)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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