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Janice is considering an investment costing $65,500 with cash flows of $48,700 in Year 2, $36,500 in Year 3, and $19,900 in Year 4. The
Janice is considering an investment costing $65,500 with cash flows of $48,700 in Year 2, $36,500 in Year 3, and $19,900 in Year 4. The discount rate is 11 percent, and the required discounted payback period is 3 years. Should this project be accepted or rejected? What is the discounted payback period?
Multiple Choice
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Rejected 2.82 years
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Accepted; 1.97 years
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Accepted; 2.38 years
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Rejected; 3.77 years
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Accepted; 2.97 years
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