How do you calculate the payback statistic?

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 ATime: 0 1 2 3 4 5

Cash flow:-$2,100 $790 $810 $740 $520 $320

Should the project be accepted or rejected?

• accepted
• rejected