Maximum allowable discounted payback period

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Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project C Time: 0 1 2 3 4 5 Cash flow –$2,800 $1,200 $1,020 $1,060 $660 $460 ________________________________________ Discounted payback period years Should the project be accepted or rejected? Rejected Accepted

Reference no: EM131059070

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