Payback period Jordan Enterprises is considering a capital expenditure that requires an initial investment of $37,000 and returnsafter-tax cash inflows of $6,632 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.

a.The payback period for this project is __ years.(Round to two decimalplaces.)

b.Should the company accept theproject?(Select the best answerbelow.)

A.

The company should accept the project since the payback period is less than the maximum.

B.

The company should accept the project since theafter-tax cash flows occur for more years than the maximum acceptable payback.

C.

The company should reject the project since theafter-tax cash flows occur for more years than the maximum acceptable payback.

D.

The company should reject the project since the payback period is less than the maximum.

E.

The company should reject the project since the payback period is less than the number of years of theafter-tax cash flows.