20) An investment project has the cash flow stream of $-3250, $80, $200, $75, and $90. The cost of capital is 12%. What is the discounted payback period?

1.24 years

1.85 years

2.24 years

2.85 years

3.05 years

36) The payback period rule:

	determines a cutoff point so that all projects accepted by the NPV rule will be accepted by the payback period rule.
	determines a cutoff point so that depreciation is just equal to positive cash flows in the payback year.
	requires an arbitrary choice of a cutoff point.
	varies the cutoff point with the interest rate.
	Both determines a cutoff point so that all projects accepted by the NPV rule will be accepted by the payback period rule; and varies the cutoff point with the interest rate.