Question
Compute the payback statisticfor Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years.(Round your
| Compute the payback statisticfor Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years.(Round your answer to 2 decimal places.) |
| Project A | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow | $2,100 | $790 | $810 | $740 | $520 | $320 |
| Payback | years |
| Should the project be accepted or rejected? | ||
|
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
