Question: Which projects should be accepted according to discounted payback period on the table? TABLE 10-2 Discounted Payback, Period Example Using a 17 Percent Required Rate

Which projects should be accepted according to discounted payback period on the table?

Which projects should be accepted according to
TABLE 10-2 Discounted Payback, Period Example Using a 17 Percent Required Rate of Return PROJECT A Undiscounted Free Discounted Free Cumulative Discounted Year Cash Flows Cash Flows at 17% Free Cash Flows -$10,000 -$10,000 -$10,000 6,000 5,130 -4,870 4,000 2,924 -1,946 U A W N - O 3,000 1,872 774 2,000 1,068 994 1,000 456 1,450 PROJECT B Undiscounted Free Discounted Free Cumulative Discounted Year Cash Flows Cash Flows at 17% Free Cash Flows -$10,000 -$10,000 -$10,000 5,000 4,275 -5,725 5,000 3,655 -2,070 UI A W N - O 0 -2,070 0 -2,070 O -2,070

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