Question: You are considering a project with an initial cash outlay of $150,000 and expected free cash flows of $70,000 at the end of each year

You are considering a project with an initial cash outlay of $150,000 and expected free cash flows of $70,000 at the end of each year for 4 years. The required rate of return for this project is 10 percent.

a. What is the project's payback period?

b. What is the project's discounted payback period?

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