Compute the payback statistic for project x

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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 12 percent and the maximum allowable payback is 4 years.

Time: 0 1 2 3 4 5

Cash flow:-3,100 950 700 850 725 625

Reference no: EM132909709

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