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: 0 1 2 3 4 5

Cash flow: -3,000 900 650 800 700 650

Multiple Choice:

A. 3.93 years, Reject

B.. 2.93 years, Reject

C. 3.93 years, Accept

D. 2.93 years, Accept