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A company's required return for a particular investment project can be expressed as a force of interest, 8(1). This force of interest is a

A company's required return for a particular investment project can be expressed as a force of interest, 8(1). This force of interest is a function of time and at any time 1. measured in years, is given by the formula: (1) = 0.05+0.002r 0SrS5 6(1) = 0.06 5

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SOLUTION To calculate the discounted payback period for this project we need to calculate the present value of cash inflows and outflows at each year At t 0 the outflow is ... blur-text-image

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