Question: Our company is evaluating a project with projected future annual cash flows shown as follows and an appropriate cost of capital of 13.0% : Period
Our company is evaluating a project with projected future annual cash flows shown as follows and an appropriate cost of capital of 13.0% : Period 0: $-75,350.; Period 1: $-29,850.; Period 2: $35,300.; Period 3: $64,350.; Period 4: $33,700.; Period 5: $30,500.; Compute the Payback statistic for the project and indicate whether the company should accept or reject this project if the maximum allowable payback period is 5 years
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