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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 small-dollar projects. The company's

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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 small-dollar projects. The company's information officer has submitted a new computer project with a cost of $21,000. The cash flow will be $5,250 each year for the next five years. The cutoff period used by the company is 4 years. The information officer states that it doesn't matter which model the company uses for the decision the project is clearly acceptable. Demonstrate for the information 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%. The discounted payback period for the project is the 4-year cutoff period. (Select from the drop-down menu.) whereas with the discounted payback period the project is a so the selection of the method Therefore, with the payback period the project is a (Solect from the drop-down menus.) 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 $21,000. The cash flow will be $5,250 each year for the next five years. The cutoff period used by the company is 4 years. The information officer states that it doesn't matter which model the company uses for the decision the project is clearly acceptable. Demonstrate for the information 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%. The discounted payback period for the project is the 4-year cutoff period. (Select from the drop-down menu.) whereas with the discounted payback period the project is a so the selection of the method Therefore, with the payback period the project is a (Solect from the drop-down menus.)

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