Question: Compute the discounted payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown as
Compute the discounted payback statistic for Project X 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 10 percent and the maximum allowable discounted payback is three years. Please show work.
Year 0 1 2 3 4 5
Cash flow -$1,000 500 480 400 300 150
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