1) Given the following two projects and their cash flows. Calculate the discounted payback period with a discount rate of 5%, 10% and 18%. What do you notice about the payback period as the discount rate rises?

a. With a discount rate of 5%, the cash outflow for project A is (recovered in ____ yearsever fully recovered)

b. With a discount rate of 10%, the cash outflow for project A is (recovered in ____ yearsever fully recovered)

c. With a discount rate of 18%, the cash outflow for project A is (recovered in ____ yearsever fully recovered)

d. With a discount rate of 5%, the cash outflow for project B is (recovered in ____ yearsever fully recovered)

e. With a discount rate of 10%, the cash outflow for project B is (recovered in ____ yearsever fully recovered)

f. With a discount rate of 18%, the cash outflow for project B is (recovered in ____ yearsever fully recovered)

Cash Flow Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 $13,000 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 B. $105,000 $31,500 $42,000 $10,500 $21,000 $21,000 $0