Question: Compute the payback statistic for Project B if the appropriate cost of capital is 11 percent and the maximum allowable payback period is three years.
Compute the payback statistic for Project B if the appropriate cost of capital is 11 percent and the maximum allowable payback period is three years. (Round your answer to 2 decimal places. If the project never pays back, then enter a "0" (zero).)
| PROJECT B | ||||||
| TIME | 0 | 1 | 2 | 3 | 4 | 5 |
| CASH FLOW | -$12,300 | $3,480 | $4,440 | $1,780 | $0 | $1,260 |
PAYBACK _________YEARS
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