Question: Compute the payback statistic for Project B if the appropriate cost of capital is 13 percent and the maximum allowable payback period is three years.
Compute the payback statistic for Project B if the appropriate cost of capital is 13 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).)
| Project B | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $11,500 | $3,400 | $4,280 | $1,620 | $0 | $1,100 |
Payback _____ Years
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