Consider the following series of cash flows:
Cash Flow: -50 20 10 10 20 20
Time: 0 1 2 3 4 5
If you are using a 10% discount rate, which of the following is true?
Payback will be smaller than discounted payback
Payback will be larger than discounted payback
Payback and discounted payback will both be less than 0
Payback and discounted payback will be the same