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Firms decision change as the discount rate changes

Question:

A project that costs $2500 to install will provide annual cash flows of $600 for the next 6 yrs. 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 rate 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: Firms decision change as the discount rate changes

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