Question: Assume we will accept the project if it pays back within two years. Year 0: -155,000 Year 1: 111,880 Year 2: 131,080 Your required return

Assume we will accept the project if it pays back within two years.

Year 0: -155,000

Year 1: 111,880

Year 2: 131,080

Your required return for assets of this risk is 10%.

Use NPV, Payback period and discounted payback period to decide if we accept or reject the project?

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