Will the firms decision change as the discount rate changes


Question:

A project that costs $2500.00 to install will provide annual cash flows of $600 for the next six years. The firm accepts projects with payback periods of less than 5 years. Will the project be accepted? Should this project be pursued if the discount rats is 2%? What if the discount rate is 12%? Will the firm's decision change as the discount rate changes?

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Finance Basics: Will the firms decision change as the discount rate changes
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