Question: A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate

  1. A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the following four years. What is the discounted AND non-discounted paybacks of a project that has cash flows as shown in the table? Show your calculations step by step.

Year Cash Flow

  1. -$425,000
  2. $150,000
  3. $160,000
  4. $270,000
  5. $80,000

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