Discounted payback period. Given the following two projects and their cash​ flows, calculate the discounted payback period with a discount rate of 5​%, 10​%, and 15​%. What do you notice about the payback period as the discount rate​ rises? Explain this relationship.     Cash Flow A B     Cost ​ $11,000   ​$90,000     Cash flow year 1 ​$3,929   ​$9,000     Cash flow year 2 ​$3,929   ​$18,000     Cash flow year 3 ​$3,929   ​$27,000     Cash flow year 4 ​$3,929   ​$36,000     Cash flow year 5 ​$3,929   ​$13,500     Cash flow year 6 ​$3,929   ​$0

Find the profitability index of a project with the following cash flows using a discount rate of 4%: Period 0: -1000 Period 1: 793 Period 2: 391 Period 3: 204 Round your answer to the nearest one-hundredth.

Use the following table of free cash flows for an investment to answer questions 12-15: 2 5,000 3 3,000 Free Cash Flow -8,000 1,000 12. What is the payback period for this project? If the required payback period is 2 years, would you invest in this project based on the payback period? 13. If the discount rate is 10%, what is the discounted payback period for this project? If the required discounted payback period is 2 years, would you invest in this project based on the payback period? 14. What is the internal rate of return on this project? If the discount rate (or WACC) is 10%, would you invest in this project? 15. With a discount rate (or WACC) of 10%, what is the net present value (NPV) of this project and would you accept or reject the project?

Payback period. Given the cash flow of two projects-A and B-in the following table, and using the payback period decision model, which project(s) do you accept and which proje period for recapturing the initial cash outflow? For payback period calp What is the payback period for project A? 6 Data Table - X years (Round to one decimal place.) (Click on the following icon D in order to copy its contents into a spreadsheet.) Cash Flow B. Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow $12,000 $6,000 $6,000 $6,000 $100,000 $20,000 $10,000 $40,000 $6,000 $30,000 SO $6,000 $6,000 year 6. SO Print Done