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Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash

Consider the following two projects:

Project

Year 0

Cash Flow

Year 1

Cash Flow

Year 2

Cash Flow

Year 3

Cash Flow

Year 4

Cash Flow

Discount

Rate

A

-100

40

50

80

N/A

12%

B

-73

30

30

30

30

10%

What is the shortest discounted payback period (in years)?

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