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An investment project costs $18,500 and has annual cash flows of $4,400 for six years. Required : (a) What is the discou...

An investment project costs $18,500 and has annual cash flows of $4,400 for six years. Required : (a) What is the discounted payback period if the discount rate is zero percent? (b) What is the discounted payback period if the discount rate is 4 percent? (c) What is the discounted payback period if the discount rate is 19 percent?

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Cash flow Discounted c.F Cumulative cash flows Year P.V.Factor (18,500.00) (18,500) (14,100) (9,700) (5,300) (900) 3,500 (18,

Cash flow Year P.V.Factor Discounted C.F Cumulative cash flows (18,500) (14,269) (10,201) (6,290) (2,528) (18,500.00) 4,400.0

Year P.V.Factor Discounted C.F Cumulative cash flows (18,500) (14,803) Cash flow (18,500.00) 4,400.00 0.84033613 4,400.00 0.7

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