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Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below

Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 14 percent and the maximum allowable discounted payback is 3 years.

Time: 0 1 2 3 4 5

Cash flow: -960 460 520 440 340 190

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