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You are evaluating an investment project, project AA, with the following cash flow period End of period cash flow 0 -$100,000 1 20,000 2 40,000

You are evaluating an investment project, project AA, with the following cash flow

period End of period cash flow
0

-$100,000

1 20,000
2 40,000
3 60,000
4 30,000

CALCULATE:

A) Payback period

B) discounted payback period, assuming a 5 % cost of capital .

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