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Find the payback period statistic for project x

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Reference no: EM132990166

Problem 1: Compute the payback period statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown in the chart if the maximum allowable payback is four years.

Year Cash Flow

0 -$1,450

1 $250

2 $380

3 $620

4 $1,000

5 $100

Payback period = $900

Reference no: EM132990166

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