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Coughlin Motors is considering a project with the following expected cash flows: Year Cash Flow 0 -$1,000 million 1 500 million 2 400 million 3

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Coughlin Motors is considering a project with the following expected cash flows:

Year

Cash Flow

0

-$1,000 million

1

500 million

2

400 million

3

300 million

4

250 million

The projects WACC is 15 percent. What is the projects payback period and discounted payback period?Question 10 options:

1)

Payback period= 2 years and discount payback period= 2.68 years

2)

Payback period= 2.25 years and discount payback period= 2.68 years

3)

Payback period= 2.33 years and discount payback period= 3.21 years

4)

Payback period= 2.33 years and discount payback period= 3.46 years

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