How do compute the payback statistic for project a

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Problem 1: Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)

Project A

Time: Cash flow:

0 -$2,800
1 $1,070
2 $1,020
3 $880
4 $660
5 460

Problem 2: Should the project be accepted or rejected?

Reference no: EM132755506

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