QUESTION 3 Use the following information to answer the next two questions below: (Q3 and Q4) A capital investment project is estimated to have the following after- tax cash flows: Assume that a discount rate for this project is 12 percent. Cash Flows 0 -12,000 4,000 4,200 4,400 4,100 Year 2 3 4 Should the company accept the project if it assigns a three- year payback period to this project? Why or why not? A. Yes; The Payback Period is 3.01 years Yes; The Payback Period is 2.86 years No; The Payback Period is 3.59 years. No; The Payback Period is 2.93 years QUESTION4 A capital investment project is estimated to have the following after- tax cash flows: Assume that a discount rate for this project is 12 percent. Cash Year Flows 2 3 4 Should the company accept the project if it assigns a three- 0 -12,000 4,000 4,200 4,400 4,100 year discounted payback period to this project? Why or why not? No; The Payback Period is 2.93 years. No; The Payback Period is 3.75 years Yes; The Payback Period is 2.86 years. Yes; The Payback Period is 3.01 years