Question: Compute the payback statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown as follows

Compute the payback statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate is 8 percent and the maximum allowable payback is fouryears.

Project A Time Cash Flow-S1,000 S350 S480 $520 $300 $100

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