Connect Only Problem 13-3 Payback (LG13-2)

Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years.

Note: Round your answer to 2 decimal places.

Project A

Time:	0	1	2	3	4	5
Cash flow:	$1,600	$590	$660	$640	$420	$220

Payback_______years?

Should the project be accepted or rejected?

(Click to select) Accepted Rejected