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: Compute the payback period statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown
- : Compute the payback period statistic for Project A 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.If the discounted payback period were computed, identify if it would be less than, equal to, or greater than the non-discounted payback period.
Project A
Time | 0 | 1 | 2 | 3 | 4 | 5 |
Cash Flow | -$1,000 | $350 | $480 | $520 | $300 | $100 |
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