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Comparing payback period and discounted payback period Mathew inc is debating using the payback period versus the discounted payback period for smal-dolar projects The
Comparing payback period and discounted payback period Mathew inc is debating using the payback period versus the discounted payback period for smal-dolar projects The company's information officer has submited a new computer project with a cost of $15,000 The cash flow will be $5,333 each year for the next five years. The cutif period used by t company is 3 years The information officer states that t doesnt matter which model the company uses for the decision, the project is clearly acceptable Demonstrate for the infomaton officer that the selection of the model does matter What is the payback period for the project? years (Round to one decimal place.) Calculate the discounted payback period for the project at any positive discount rate, say 1% Therefore, with the payback period the project is whereas with the discounted payback period the project is
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