Compute the payback statistic for project

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Reference no: EM13724230

Compute the payback statistic for Project A 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 four years.

Project A

Time: 0 1 2 3 4 5

Cash flow -$1,000 $350 $480 $520 $300 $100

Reference no: EM13724230

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