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. (If the project never pays back, then enter a "0" (zero).) Project B Time: 0 1 2 3 4 5 Cash flow: –$11,000 $3,350 $4,180 $1,520 $0 $1,000 Should the project be accepted or rejected?
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. (If the project never pays back, then enter a "0" (zero).) Project B Time: 0 1 2 3 4 5 Cash flow: –$11,000 $3,350 $4,180 $1,520 $0 $1,000 Should the project be accepted or rejected?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...
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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. (If the project never pays back, then enter a "0" (zero).)
Project B | ||||||
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | –$11,000 | $3,350 | $4,180 | $1,520 | $0 | $1,000 |
Should the project be accepted or rejected?
-
accepted
-
rejected
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