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.

time 0 1 2 3 4 5

cash -$11,100 $3360 $4200 $1540 $0 $1020

flow

Payback Years?

accept or reject project?

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