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Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if

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Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is 4 years. 1 3 4 5 Time: Cash flow: 0 -2,700 2 650 850 900 825 525

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