Question: 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

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

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