Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maxim is three years. Project B Time: 0 1 2 3 Cash flow: -$ 11,600 $3,410 $4,300 $ 1,640 4 5 $0 $ 1,120 Should the project be accepted or rejected? Note: If the project never pays back, then enter a "0" (zero). Payback Should the project be accepted or rejected? years

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
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Chapter26: Capital Investment Analysis
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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.
Project B
Time:
0
1
2
3
Cash flow: -$ 11,600 $ 3,410 $ 4,300 $ 1,640
4
$0
Should the project be accepted or rejected?
Note: If the project never pays back, then enter a "0" (zero).
Payback
Should the project be accepted or rejected?
5
$ 1,120
years
Transcribed Image Text: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. Project B Time: 0 1 2 3 Cash flow: -$ 11,600 $ 3,410 $ 4,300 $ 1,640 4 $0 Should the project be accepted or rejected? Note: If the project never pays back, then enter a "0" (zero). Payback Should the project be accepted or rejected? 5 $ 1,120 years
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