# References worksheet learning understand the payback

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ReferencesWorksheetLearning Objective: 08-04 Understand the payback rule and explain why it doesn’t always make shareholders better off.The following are the cash flows of two projects:YearProject AProject B0−\$370 −\$370 1200 270 2200 270 3200 270 4200 What is the payback period of each project? (Round your answers to 2 decimal places.)
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Page 9 of 21Assignment Print View
A project that costs \$3,400 to install will provide annual cash flows of \$1,000 for each of the next 6 years.Calculate the NPV if the discount rate is 14%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Is this project worth pursuing?
How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
ReferencesWorksheetLearning Objective: 08-01 Calculate the net present value of a project.A project that costs \$3,400 to install will provide annual cash flows of \$1,000 for each of the next 6 years.Calculate the NPV if the discount rate is 14%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Is this project worth pursuing?
How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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