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. (If the project never pays back, then enter a "0" (zero).)

Project B
Time: 0 1 2 3 4 5
Cash flow: $12,800 $3,530 $4,540 $1,880 $0 $1,360

Should the project be accepted or rejected?

multiple choice

  • accepted

  • rejected

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