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The standard acceptable payback period is 4 years. Consider the following cash flows of a project: 1 4 Year CFs ($) 0 -100 2 30

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The standard acceptable payback period is 4 years. Consider the following cash flows of a project: 1 4 Year CFs ($) 0 -100 2 30 3 10 5 50 50 20 Should this project be undertaken according to the payback period rule? Multiple Choice Accept, the payback period is 3.5 years Reject, the project never pays back Reject, the payback period is 5 years Accept the payback period is 2.5 years Reject, the payback period is 4.3 years

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