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. (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 $12,100 $3,460 $4,400 $1,740 $0 $1,220

Payback ____? years

Should the project be accepted or rejected?

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