Calculate Project Xs discounted payback period

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Question - Investment Criteria. 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: EM132778867

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