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The initial investment for the project is $10 million. The after-tax incremental cash flows are: Year 1= $4 million;Year 2=$5million; Year 3=$5 million; Year 4=$3

The initial investment for the project is $10 million. The after-tax incremental cash flows are: Year 1= $4 million;Year 2=$5million; Year 3=$5 million; Year 4=$3 million. The discount rate (or required rate of return) is 7%.

  1. What is the ordinary payback period
  2. What is the discounted payback period

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