12.Compute the payback statistic for Project B and decide whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 12 percent and the maximum allowable payback is three years.

Project B

Time

0

1

2

3

4

5

Cash Flow

-$11,000

$3,350

$4,180

$1,520

$0

$1,000

13.Payback 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 cost of capital is 8 percent and the maximum allowable payback is four years.

Project A

Time

0

1

2

3

4

5

Cash Flow

-$1,000

$350

$480

$520

$300

$100

14.IRR Compute the IRR statistic for Project E and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 8 percent.

Project E

Time

0

1

2

3

4

5

Cash Flow

-$1,000

$350

$480

$520

$300

$100