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Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years.

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Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: Cash flow -$1,100 $390 $510 $540 $320 $120 2 4 5 Payback years Should the project be accepted or rejected? Accepted O Rejected

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