Question
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: | $12,500 | $3,500 | $4,480 | $1,820 | $0 | $1,300 |
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Financial Statement Analysis
Authors: Martin S. Fridson, Fernando Alvarez
5th Edition
1119457149, 978-1119457145
