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. Calculate

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. Calculate the discounted payback period of the project. Assume a 10% discount rate.

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