More ambitious reformers call for publicly financed elections, in which _____ provides equal funding to each candidate and allow
1 answer:
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Answer:
REJECTED
It fails the payback test.
Explanation:
first, we check if payback occurs at year 3;
payback:
-175,000
-65,800
+94,000
<u> +41,000</u>
-105,800
the cashflow until year 3 aren't positive thus, the payback is not achieve
As the discount paymback will make the future cash inflow lower than nominal; the discounted payback will also not be achieve.
Last, let's check if the net present value of the project at 11% is positve:
The project achieve a psoitive value at the discount rate of 11%
But, It will be rejected as it fails the payback tests.