Determine the payback statistic for project a

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Problem 1: Payback Compute the payback statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown as follows 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: EM132729219

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