Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is 4 years. Time: 0 1 2 3 4 5 Cash flow: -2,700 850 650 900 825 525 rev: 12_06_2012 Multiple Choice 3.36 years, Reject 2.36 years, Accept 3.36 years, Accept 2.36 years, Reject

Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is 4 years. Time: 0 1 2 3 4 5 Cash flow: -2,700 850 650 900 825 525 rev: 12_06_2012 Multiple Choice 3.36 years, Reject 2.36 years, Accept 3.36 years, Accept 2.36 years, Reject

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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