Question: Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if

Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is 3 years. Time: 0 1 2 3 4 5 Cash flow: -2,000 300 650 900 725 500 Multiple Choice 3.21 years, Accept 3.21 years, Reject 2.21 years, Accept 2.21 years, Reject

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