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please explain how to calculate. Thank you Discounted payback period. Given the following two projects and their cash flows, , calculate the discounted payback period
please explain how to calculate. Thank you
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 18%. What do you notice about the payback period as the discount rate rises? Explain this relationship. With a discount rate of 6%, the cash outflow for project A is: (Select the best response.) A. recovered in 3.16 years. B. recovered in 5 years. C. recovered in 3 years. D. never fully recovered. \begin{tabular}{|l|r|r} \hline Cash Flow & A & B \\ \hline Cost & $8,000 & $105,000 \\ \hline Cash flow year 1 & $2,857 & $10,500 \\ \hline Cash flow year 2 & $2,857 & $21,000 \\ \hline Cash flow year 3 & $2,857 & $31,500 \\ \hline Cash flow year 4 & $2,857 & $42,000 \\ \hline Cash flow year 5 & $2,857 & $15,750 \\ \hline Cash flow year 6 & $2,857 & $0 \\ \hline \end{tabular}Step by Step Solution
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