Comparing payback period and discounted payback period. ?Mathew, Inc. is debating using the payback period versus the discounted payback period for?small-dollar projects. The?company's information officer has submitted a new computer project with a cost of...

Comparing payback period-and dfscounted paybackpedod. Mathew. Inc. is debating using the payback period versus the discounted payback period for smalldollar projects. The company's information ofcer has submitted a new computer project with a cost of $24,000. The cash ow will be $5.000 each year for the next ve years. The cutoff period used by the company is 4 years. The information oicer states that it doesn't matter which model the company uses for the decision; the project is cieariy acceptable. Demonstrate for the information ofcer that the selection of the model does matter. IIth is the payback period for the project? D years (Round to one decimal place.) Calculate the discounted payback period for the project at any positive discount rate. say 1%. The discounted payback period for the project is Y the 4~year cutoff period. (Select from the dropdown menu.) Therefore, with the payback period the project is a E, whereas with the discounted payback period the project is a i; so the selection of the method : {Select from the dropdown menus.)