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Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years.
Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) |
Project A | ||||||
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow | $2,500 | $950 | $930 | $820 | $600 | $400 |
Payback | years |
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