You are evaluating an investment project costing $11,400 initially. The project will provide $3,000 in after-taxrcash flows
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You are evaluating an investment project costing $11,400 initially. The project will provide $3,000 in after-taxrcash flows in the first year and $5,000 each year thereafter for 4 years. The maximum payback period for your company is 3 years.r
Your company's cost of capital is 11%.r
What is the discounted payback period for this project?
Should your company accept this project based on the discounted payback period criterion?
Yes
No
r
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