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.

Project B

Time: 0 1 2 3 4 5
Cash flow: $ 12,300 $ 3,480 $ 4,440 $ 1,780 $ 0 $ 1,260

Should the project be accepted or rejected?

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

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