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Please help with all parts! Discounted payback period. Given the following two projects and their cash flows, ?, calculate the discounted payback period with a
Please help with all parts!
Discounted payback period. Given the following two projects and their cash flows, ?, calculate the discounted payback period with a discount rate of 5%, 8%, and 15%. What do you notice about the payback period as the discount rate rises? Explain this relationship. 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. D. never fully recovered. Cash Flow B 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 A $12,000 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $105,000 $10,500 $21,000 $31,500 $42,000 $15,750 $0Step by Step Solution
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