Discounted payback period. Given the following two projects and their cash flows, , calculate the discounted payback period with a discount rate of 6%, 8%, and 20%. What do you notice about the payback period as the discount rate rises? Explain this relationship.

A B 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 $11,000 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $100,000 $10,000 $20,000 $30,000 $40,000 $15,000 $0