Compute the payback statistic for project

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Question 1: Compute the Payback statistic for Project B given the following cash flows and decide whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable payback is 3 years.

Project B

Time                        0                    1                      2                       3                  4                     5

Cash Flow         -$12,000         $3,150         $4,080           $1,520          $0               $1,000

Reference no: EM132488840

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