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KVE corporation is considering investing in a project with the cash flows shown below. Compute the payback statistic for the project and recommend whether the
KVE corporation is considering investing in a project with the cash flows shown below. Compute the payback statistic for the project and recommend whether the firm should accept or reject it. The required cost of capital is 10 percent and the maximum allowable payback is 2.5 years Time Cash Flow O 1.45 years, accept O 1.25 years, accept O 1.375 years, accept O 2.60 years, reject 0 -50 1 20 2 80 3 90
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