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Project P has a cost of $1,000 and cash flows of $300 per year for three years plus another $1,000 in Year 4. The discount
Project P has a cost of $1,000 and cash flows of $300 per year for three years plus another $1,000 in Year 4. The discount rate is 15 percent. a. What are P's payback and discounted payback periods? b. If the company requires a payback of three years or less, would the project be accepted?
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