Question: Question 20 Our company is evaluating a project with projected future annual cash flows shown as follows and an appropriate cost of capital of 12.3%

Question 20

"Our company is evaluating a project with projected future annual cash flows shown as follows and an appropriate cost of capital of 12.3% : Period 0: $-80,600.; Period 1: $-38,600.; Period 2: $36,350.; Period 3: $65,400.; Period 4: $34,400.; Period 5: $41,000.; Compute the Payback statistic for the project and indicate whether the company should accept or reject this project if the maximum allowable payback period is 4 years."

		2.90 years / Reject
		3.51 years / Accept
		3.51 years / Reject
		3.21 years / Accept
		3.21 years / Reject
		2.29 years / Accept
		2.29 years / Reject

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