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Our company is evaluating a project with the projected future annual cash flows shown as follows and an appropriate cost of capital of 8.0%: Period
Our company is evaluating a project with the projected future annual cash flows shown as follows and an appropriate cost of capital of 8.0%: Period 0: $2,000, Period 1: $700, Period 2: $300, Period 3: $900, Period 4: $2,400, Period 5: $500. Compute the payback statistic for the project and whether the company should accept or reject this project if the maximum allowable payback period is 4.0 years.
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