Compute the payback statistic for project a

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Compute the Payback statistic for Project A 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.

Project A

Time

0

1

2

3

4

5

Cash Flow

-$1,000

$350

$480

$520

$300

$100

Reference no: EM131026306

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