Q11. The CEO has determined that if the payback period or discounted payback period method is used for evaluation, any project must pay back within 3 years to be accepted.

Would you accept or reject the project using the payback method of evaluation?

A.

Reject

B.

Indifferent between accepting and rejecting

C.

Not enough information provided to decide

D.

Accept

a. How long does this project take to pay back using the discounted payback period method, assuming a 9% discount rate? Round your answer to the nearest tenth of a year (i.e. 5.5 years).

b. What is the NPV of this project at a 10% discount rate? Please round your answer to the nearest dollar.