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. Question 3 You are considering a project that will produce cash inflows of $1,800 a year for 4 years. The project has a 10
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Question 3 You are considering a project that will produce cash inflows of $1,800 a year for 4 years. The project has a 10 percent required rate of return and an initial cost of $5,000. What is the discounted payback period? never 4.26 years 4.38 years 3.91 years 3.43 years Question 2 Adam is considering adding accessories to his game shop. He estimates that the cost of the project will be $10,300. Accessories sales are expected to produce net cash inflows as in the table below. Should Adam add accessories to his store if the required payback period is 3 years? Why or why not? Year Cash inflow $2,300 1 2 $2,900 3 $3,600 4. $4,400 No; The project never pays back. Yes; The payback period is 3.34 years. No; The payback period is 3.34 years. Yes; The payback period is 2.42 years. No; The payback period is 2.42 yearsStep by Step Solution
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