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A project costs $ 60,000 today (at t = 0) and is expected to generate cash flows of $10,000 per year for the next 20

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A project costs $ 60,000 today (at t = 0) and is expected to generate cash flows of $10,000 per year for the next 20 years (t =1 to t = 20). The firm has established a payback benchmark of 5 years or less to accept a project. Should this project be accepted, and why? Hint: Notice that all positive cash flows have the same value of $10,000 Yes, since the project exhibits a PB - 4.5 years O NO, since the project exhibits a PB - 6.5 years O Yes, since the project exhibits a PB = 4 years O No, since the project exhibits a PB - 6 years

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