Maximum allowable payback period is three years

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Reference no: EM131608857

Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years. (Round your answer to 2 decimal places. If the project never pays back, then enter a "0" (zero).) Project B Time: 0 1 2 3 4 5 Cash flow –$12,500 $3,500 $4,480 $1,820 $0 $1,300 Payback years Should the project be accepted or rejected? Accepted Rejected.

Reference no: EM131608857

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