Question: 2) Let us consider the same investment whose cost and expected cash flows are given in Question 1 using discounted payback period. a) What is

 2) Let us consider the same investment whose cost and expected
cash flows are given in Question 1 using discounted payback period. a)

2) Let us consider the same investment whose cost and expected cash flows are given in Question 1 using discounted payback period. a) What is the exact payback period of that investment according to the discounted payback method if the relevant discount rate for that investment is 14% b) Should the firm accept or reject this investment if the desired payback period of the investment is 3 years. 2021 $ 500 000 2022 $ 700 000 2023 $ 1 000 000 2024 $ 1 000 000 2025 $ 800 000 2026 S 600 000 2) Let us consider the same investment whose cost and expected cash flows are given in Question 1 using discounted payback period. a) What is the exact payback period of that investment according to the discounted payback method if the relevant discount rate for that investment is 14% b) Should the firm accept or reject this investment if the desired payback period of the investment is 3 years. 2021 $ 500 000 2022 $ 700 000 2023 $ 1 000 000 2024 $ 1 000 000 2025 $ 800 000 2026 S 600 000

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