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2) Let us consider the same investment whose cost and expected cash flows are given in Question 1 using discounted payback period. a) What is

2) Let us consider the same investment whose cost and expected cash flows are given in

Question 1 using discounted payback period.

a) What is the exact payback period of that investment according to the discounted payback method if the relevant discount rate for that investment is 14%

b) Should the firm accept or reject this investment if the desired payback period of the investment is 3 years.

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