Compute payback statistic for project

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Compute the payback statistic for Project B if the appropriate cost of capital is 11 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: –$11,400 $3,390 $4,260 $1,600 $0 $1,080

Payback years? ___________

Should the project be accepted or rejected?

Accepted

Rejected

Reference no: EM131613172

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