Question: Please do it by type not pics. 1.Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the

Please do it by type not pics.

1.Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years.

Project B
Time: 0 1 2 3 4 5
Cash flow: $12,500 $3,500 $4,480 $1,820 $0 $1,300
Payback = years.

Should the project be accepted or rejected?

accepted

rejected

2.Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 percent and the maximum allowable discounted payback period is three years.

Project C
Time: 0 1 2 3 4 5
Cash flow: $1,300 $600 $570 $610 $360 $160

Discounted payback period = years.

Should the project be accepted or rejected?

accepted

rejected

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