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.

Project B

Time: 0 1 2 3 4 5
Cash flow: $ 11,500 $ 3,400 $ 4,280 $ 1,620 $ 0 $ 1,100

Should the project be accepted or rejected?

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

Payback in years

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