Would you accept or reject project based on payback period

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Reference no: EM131935558

You are evaluating a project based on the following: Initial Investment: $2,750,000 Cash Flows: $500,000 per year for 7 years (end of year) Required Return: 7% Required Payback: 6 Years

1. Would you accept or reject the project based on the Net Present Value (NPV)?

2. Would you accept or reject the project based on the Payback Period?

3. Would you accept or reject the project based on the Discounted Payback Period?

4. Based on your answers to Questions 1-3, would you accept or reject the project? Why?

Reference no: EM131935558

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