Q1) An investment with an initial cost of $16,000 produces cash flows of $5000 per year for 5 years. If the required rate of return is 10%,

- what is the payback period?

- what is the discounted payback period for the investment?

Q2) The Balistan Rug Company is considering investing in a new loom that will cost $12,000. The new loom will create positive end of year cash flow of $4999.62 for each of the next 3 years. The internal rate of return for this project is. (need stepsto caculate)

A) 10.15%

B) 11.52%

C) 12.04%

D) 13.91%

E) 15.00%