9. You are given the following projected cash flows:

Year CF (in thousands)

0 -175

1 25

2 35

3 40

4 45

5 75

6 75

A. Find the discounted payback period (given that the cost of capital = 11%)

B. If your maximum discounted payback period is 4 years, based solely on the discounted payback you found in part A, do you accept the project?