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For the given cash flows, suppose the firm uses the discounted payback decision rule. Year Cash Flow 0 $ 157,000 1 59,000 2 80,000 3

For the given cash flows, suppose the firm uses the discounted payback decision rule. Year Cash Flow 0 $ 157,000 1 59,000 2 80,000 3 64,000 At a required return of 7 percent, what is the discounted payback period? 2.51 years 2.61 years 2.71 years 2.81 years Flag this Question Question 5 3 pts (Previous question Continued) Would the company accept the project if it requires a discounted payback of 2 years? Yes No The company would be indifferent between the two decisions

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