Problem 13-5 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. (If the project never pays back, then enter a "0" (zero).)

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

Should the project be accepted or rejected?

multiple choice

• accepted

• rejected