Question: A firm is evaluating a proposal which has an initial investment of $68,000 and has cash flows of $20,000 per year for five years. 1.

A firm is evaluating a proposal which has an initial investment of $68,000 and has cash flows of $20,000 per year for five years.

1. Calculate the payback period of the project? (2 points)

2. Calculate the discounted payback period of the project. Assume a 10% discount rate. (2 points)

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