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Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years.
Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).)
Project B | ||||||
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | $11,600 | $3,410 | $4,300 | $1,640 | $0 | $1,120 |
Payback: ____years
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