Question: Proficient: Compute the payback period statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown

  • Proficient: Compute the payback period statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown in the chart if the maximum allowable payback is four years.
  • Distinguished-level: If the discounted payback period were computed, identify if it would be less than, equal to, or greater than the non-discounted payback period.

Time 0 1 2 3 4 5

Cash flow -$1450 $250 $380 $620 $1000 $100

Can you please show how this is figured out, I have tried multiple ways and I'm not having any luck!

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