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Discounted payback period. Given the following four projects and their cash flows, calculate the discounted payback period with a 5% discount rate, 10% discount rate,
Discounted payback period. Given the following four projects and their cash flows, calculate the discounted payback period with a 5% discount rate, 10% discount rate, and 20% discount rate. What do you notice about the payback period as the discount rate rises? Explain this relationship. Cash Flow Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 $10,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 B $25,000 $2,000 $8,000 $14,000 $20,000 $26,000 S32.000 c S45,000 S10,000 S15,000 $20,000 $20,000 S15,000 S10,000 D D $100,000 S40,000 $30,000 $20,000 S10,000 S10,000 $0 With a discount rate of 5%, the cash outflow for project A is: (Select the best response.) A recovered in 4 years B. recovered in 2.74 years. C. recovered in 5 years. OD. never fully recovered. D. . With a discount rate of 10%, the cash outilow for project A is: (Select the best response.) O A recovered in 3 years, B. recovered in 5 years. C. recovered in 3.02 years, OD. never fully recovered
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