Question: Payback Compute the payback statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown as
Payback Compute the payback statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 8 percent and the maximum allowable payback is four years.
Project A
| Time | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | -$1,000 | $350 | $480 | $520 | $300 | $100 |
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