Question: Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years.
Compute the payback statistic for Project A if the appropriate cost of capital is 9 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: | $1,200 | $430 | $540 | $560 | $340 | $140 |
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