Question: Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years.

Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)

Project A
Time: 0 1 2 3 4 5
Cash flow: $2,300 $870 $870 $780 $560 $360

Should the project be accepted or rejected?

multiple choice

  • accepted

  • rejected

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