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Compute the payback period statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown in

Compute the payback period statistic for Project X 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.

Project x

Time 0 1 2 3 4 5

Cash Flow $-1,450 $250 $380 $620 $1,000 $100

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