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The Troomp project has all positive cash flows for all 7 years of its life. Its discounted pay-back period is 5.5 years, and undiscounted pay-back

  1. The Troomp project has all positive cash flows for all 7 years of its life. Its discounted pay-back period is 5.5 years, and undiscounted pay-back period is 5 years.

    If the payment on the seventh year (the last year) of the project increases from $100 to $200,then

    I. The discounted pay back period will be shorter than 5.5 years.

    II. The ordinary (undiscounted) pay-back period will be longer than 5 years.

    None of the above

    II only

    I and I

    I only

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