Compute the payback statistic for Project B if the appropriate cost of capital is 10 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: Cash flow 0 1 2 3 4 -$12,900 $3,540 $4,560 $1,900 $0 Payback years Should the project be accepted or rejected? Accepted O Rejected 5 $1,380
Compute the payback statistic for Project B if the appropriate cost of capital is 10 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: Cash flow 0 1 2 3 4 -$12,900 $3,540 $4,560 $1,900 $0 Payback years Should the project be accepted or rejected? Accepted O Rejected 5 $1,380
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 21P
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Question
![Compute the payback statistic for Project B if the appropriate cost of capital is 10 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:
Cash flow
0
1
2
3
4
-$12,900 $3,540 $4,560 $1,900 $0
Payback
years
Should the project be accepted or rejected?
Accepted
O Rejected
5
$1,380
LO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49a3807a-e262-46d7-bfa5-e6cf4020c6e2%2Fe5b9c6a6-d431-4e9c-b6f6-d72f5be47801%2Fqjkumad_processed.png&w=3840&q=75)
Transcribed Image Text:Compute the payback statistic for Project B if the appropriate cost of capital is 10 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:
Cash flow
0
1
2
3
4
-$12,900 $3,540 $4,560 $1,900 $0
Payback
years
Should the project be accepted or rejected?
Accepted
O Rejected
5
$1,380
LO
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