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a. An investment pays $5,000 per year and costs $20,000. Calculate the payback period in years. Suppose a discount rate for the investment is provided,

a. An investment pays $5,000 per year and costs $20,000. Calculate the payback period in years. Suppose a discount rate for the investment is provided, is the discounted payback always less than the regular payback? Explain.

b. Explain how the equivalent annual annuity can be used to compare projects with different lives.

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