# would the project be accepted at a discount rate of 2%?

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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Yes, the project would be accepted at a discount rate of 2% as the NPV at year 5 is $328, which means a ...

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The project would be accepted at a discount rate of 2%

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