Question: Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years.
Compute the payback statistic for Project A if the appropriate cost of capital is 8 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: | $1,300 | $470 | $570 | $580 | $360 | $160 |
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