Problem 13-5 Payback (LG13-2)

Compute the payback statistic for Project B if the appropriate cost of capital is 13 percent and the maximum allowable payback period is three years. (Round your answer to 2 decimal places. If the project never pays back, then enter a "0" (zero).)

Project B
Time:	0	1	2	3	4	5
Cash flow	$12,100	$3,460	$4,400	$1,740	$0	$1,220

Payback

years

Should the project be accepted or rejected?

	Accepted
	Rejected