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You are given a project with the following projected cash flows: Year 0 = -800,000 Year 1 = 300.000 Year 2 = 300,000 Year 3
You are given a project with the following projected cash flows: Year 0 = -800,000 Year 1 = 300.000 Year 2 = 300,000 Year 3 = 300,000 Year 4 = 300,000 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? O A. Accept OB. Indifferent between accepting and rejecting OC. Reject OD. Not enough information provided to decide How long does this project take to pay back using the discounted payback period method, assuming a 10% discount rate? Round your answer to the nearest tenth of a year (i.e. 5.5 years). years
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