*Two part question
A proposed project has the following costs and benefits:
Year
Costs
Benefits
0
2,000
1
1,000
2
1,000
3
1,000
4
2,000
5
2,000
Assuming an interest rate of 10%, the project's simple payback
period is most nearly _________.
A.
2 years
B.
4 years
C.
6 years
D.
5 years
E.
7 years
Using the information from the problem above and linear
interpolation, the project's discounted payback period is most
nearly ___________.
A.
3.62 years
B....