Question: Problem 13-3 Payback (LG13-2) Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback

Problem 13-3 Payback (LG13-2)

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: $ 11,900 $ 3,440 $ 4,360 $ 1,700 $ 0 $ 1,180

Should the project be accepted or rejected?

Note: If the project never pays back, then enter a "0" (zero).

Payback ________years?

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