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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 9 percent and the maximum allowable payback is 3 years.

Cash flow: (0) -2,800 (1) 875 (2) 600 (3) 850 (4) 800 (5) 550

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