Question: Compute the Payback statistic for Project A given the following cash flows and decide whether the firm should accept or reject the project with

Compute the Payback statistic for Project A given the following cash flows

Compute the Payback statistic for Project A given the following cash flows and decide whether the firm should accept or reject the project with the cash flows shown below where the cost of capital is 12 % and the maximum allowable payback is 3 years. Time 0 1 2 3 4 5 Cash Flow ($92,000) $42,999 $45,668 $38,554 $36,778 $47,000

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