1. Suppose a company had an initial investment of $50,000. The cash flow for the next five years are $19,000, $17,000, $14,000, $20,000, and $20,000, respectively. The interest rate is 7%. Enter your answer rounded to 2 DECIMAL PLACES.

a) What is the discounted payback period?

b) If the firm requires a discounted payback periods 3 years or less, will the project be accepted?

Yes or No

2.Suppose a company had an initial investment of $50,000. The cash flow for the next five years are $19,000, $16,000, $17,000, $16,000, and $17,000, respectively. The interest rate is 7%.

What is the discounted payback period?

3.Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $14,000, $14,000, $12,000, $14,000, and $14,000, respectively.

a) What is the payback period?(Enter your answer rounded to 2 DECIMAL PLACES)

b) If the firm accepts projects with payback periods of less than 3 years, will this project be accepted?

No or Yes