Connect Only Problem 13-4 Discounted Payback (LG13-2)

Compute the discounted payback statistic for Project D if the appropriate cost of capital is 13 percent and the maximum allowable discounted payback is four years.

Note: Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).

Project D

Time:	0	1	2	3	4	5
Cash flow:	$11,200	$3,370	$4,220	$1,560	$0	$1,040

Discounted payback period_________years?

Should the project be accepted or rejected?

(Click to select) Accepted Rejected