Question: Please show all work and equations: 3. Compute the discounted payback statistic for Project X and recommend whether the firm should accept or reject the
Please show all work and equations:
3. Compute the discounted payback statistic for Project X 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 10 percent and the maximum allowable discounted payback is three years.
Time: 0 1 2 3 4 5
Cash Flow: -1000 500 480 400 300 150
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