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: $12,200 $3,470 $4,420 $1,760 $0 $1,240

Should the project be accepted or rejected?

multiple choice accepted rejected