A project has a payback period of five years, and the firm employs a 10 percent cost of capital. Which of the following statements is correct concerning this Project's discounted payback?

Question

Answer

Discounted payback will be less than five years.

Answer

Discounted payback will increase if the Project's IRR is less than 10 percent.

Answer

Discounted payback will decrease if the Project's IRR exceeds 10 percent.

Answer

Discounted payback will exceed five years.

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A project has a payback period of five years, and the firm employs a 10 percent ...

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