Calculate Project X discounted payback period

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Reference no: EM132790001

Question - Consider the following information.

Expected Net Cash Flows

Year

Project X

0

($10,000)

1

6,500

2

3,500

3

3,000

4

1,000

Assume the discount rate is 10 percent.

Required -

a. Calculate Project X's discounted payback period. Should the project be accepted?

b. Calculate the profitability index. Should the project be accepted?

c. Calculate the accounting rate of return. Should the project be accepted?

Reference no: EM132790001

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