Calculating Payback What is the payback period for the following set of cash flows? Suggested Formula(s): Payback period = Number of years that pass before the sum of an investment's cash flows equals the cost of the investment Select one: A. 3.21 years B. 2.79 years C. 2.94 years D. 2.74 years E. 3.06 years An investment project costs $26,800 and has annual cash flows of $7,700 for six years. What is the discounted payback period if the discount rate is four percent? Suggested Formula(s): Discounted payback period = Number of years that pass before the sum of an investment's discounted cash flows equals the cost of the investment Select one: A. 3.83 years B. 4.83 years C. 2.83 years D, 3.17 years E. 4.17 years A firm evaluates all of its projects by applying the IRR rule. If the required return is 8.1 percent, the irR equals the firm should the following project? Select one: A. 6.42%; accept B. 6.42%; reject C. 7.58%; accept D. 9.48%; accept E. 9.48%; reject A project that provides annual cash flows of $42,500 for nine years costs $188,000 today. The NPV equals the required return is 11.4 percent, you should the project? Suggested Formula(s): and if Select one: A. $12,876.14; accept B. $12,876.14; reject C. $43,710.15; accept D. $43,710.15; reject E. $22,781.50; accept Bruin, ine., has identified the following two mutually exclusive projects At what discount rate (i.e,, crossover rate) would the company be indifferent between these two projects? Hint: To compute, you want to find the IRR of the differential cash flows between the two projects Select one: A. 12.01\% B. 15.41% C. 12.26% D. 13.08% E. 11.47%