Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: Cash flow: Payback 1 0 -$1,200 $430 2 $540 Answer is complete but not entirely correct. 3.92 years accepted rejected Should the project be accepted or rejected? 3 $560 $340 5 $140

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the
maximum allowable payback period is four years. (Round your answer to 2 decimal places.)
Project A
Time:
Cash flow:
Payback
0
1
-$1,200 $430
2
$540
Answer is complete but not entirely correct.
3.92 years
accepted
rejected
Should the project be accepted or rejected?
3
$560
4
$340
5
$140
Transcribed Image Text:Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: Cash flow: Payback 0 1 -$1,200 $430 2 $540 Answer is complete but not entirely correct. 3.92 years accepted rejected Should the project be accepted or rejected? 3 $560 4 $340 5 $140
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