· A project has the following cash flows. What is the Payback Period and the discounted Payback Period if the discount rate is 6%?

Cash Flows:

• Year 0: -$35,000
• Year 1: $5,000
• Year 2: $10,000
• Year 3: $15,000
• Year 4: $20,000

Requirements:

1. Calculate the Payback Period.
2. Calculate the discounted Payback Period.
3. Compare both methods.
4. Evaluate the reliability of these methods for investment decisions.