Question: Compute the payback statistic for Project B if the appropriate cost of capital is 10 percent and the maximum allowable payback period is three years.
Compute the payback statistic for Project B if the appropriate cost of capital is 10 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 $12,900 $3,540 $4,560 $1,900 $0 $1,380
Payback: _____ years
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
