Janice Is Considering an Investment Costing $65,500 with Cash Flows

Multiple Choice

Janice is considering an investment costing $65,500 with cash flows of $48,700 in Year 2,$36,500 in Year 3,and $19,900 in Year 4.The discount rate is 11 percent,and the required discounted payback period is 3 years.Should this project be accepted or rejected? What is the discounted payback period?

A) Rejected 2.82 years
B) Accepted; 1.97 years
C) Accepted; 2.38 years
D) Rejected; 3.77 years
E) Accepted; 2.97 years