Question: Discounted Payback. A project that costs $3,000 to install will provide annual cash flows of $800 for each of the next 6 years. The firm

Discounted Payback. A project that costs $3,000 to install will provide

Discounted Payback. A project that costs $3,000 to install will provide annual cash flows of $800 for each of the next 6 years. The firm accepts projects with a discounted payback of 5 years or less. Should this project be pursued if the discount rate is 2%? What if the discount rate is 12%? Will the firm's decision change as the discount rate changes? (LO3)

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