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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

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.

Project C

Time: 0 1 2 3 4 5

Cash flow -$1,000 $480 $480 $520 $300 $100

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