Discounted Payback Compute the discounted payback statistic for Project C and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable discounted payback is three years. (LG2)

Transcribed Image Text:

Project C Time: 0 1 2 3 4 5 $480 $480 $520 $300 $100 Cash flow -$1,000