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 $2,800 $1,070 $1,020 $880 $660 $460

Payback years

Should the project be accepted or rejected?
Accepted
Rejected

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