In: Finance
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An investment project costs $10,000 and has annual cash flows of $2,930 for six years. |
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What is the discounted payback period if the discount rate is zero percent? What is the discounted payback period if the discount rate is 5 percent? What is the discounted payback period if the discount rate is 19 percent? |
a) zero per cent

b) 5%

c) 19%

The costs will not be recovered by 6 years if discounted at 19%.