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. Note: Round your answer to 2 decimal places.

Project A Time: 0 1 2 3 4 5 Cash flow:

$1,100 $390 $510 $540 $320 $120

reject or accept?

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