Question
Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if
Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is 3 years.
Time:012345Cash flow:-2,000 300 650 900 725 500
rev: 12_06_2012
Multiple Choice
- 2.21 years, Reject
- 2.21 years, Accept
- 3.21 years, Reject
- 3.21 years, Accept
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
