What is project payback period

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Reference no: EM131923658

A project that costs $2,400 to install will provide annual cash flows of $590 for the next 5 years. The firm accepts projects with payback periods of less than 5 years.

a-1. What is this project's payback period? (Round your answer to 3 decimal places.)

Payback period years

a-2. Will the project be accepted?

Yes

b-1.

What is project NPV if the discount rate is 4%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV $

b-2. Should this project be pursued?

Yes

b3-

What is project NPV if the discount rate is 11%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

I NEED B3 ANSWERED PLEASE CAN SOMEONE HELP?

NPV $

b-4. Should this project be pursued?

Yes

b-5. Will the firm’s decision change as the discount rate changes?

Yes

Reference no: EM131923658

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