Series of cash flows, Consider the following series of cash

Series of cash flows

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Reference no: EM131880241

Consider the following series of cash flows:

Cash Flow: -50 20 10 10 20 20

Time: 0 1 2 3 4 5

If you are using a 10% discount rate, which of the following is true?

Payback will be smaller than discounted payback

Payback will be larger than discounted payback

Payback and discounted payback will both be less than 0

Payback and discounted payback will be the same

Reference no: EM131880241

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