Compute the payback statisticfor Project A if the appropriate cost of capital is 7 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 -$1,700 $630 $690 $660 $440 $240

Payback___________years

Should the project be accepted or rejected?

Accepted

Rejected