Compute the payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 9 percent and the maximum allowable payback is four years.

A)3.4375 years, accept
B)3.78 years, reject
C)4.4375 years, reject
D)4.78 years, accept

Question

Compute the payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 9 percent and the maximum allowable payback is four years.

A)3.4375 years, accept 
B)3.78 years, reject 
C)4.4375 years, reject 
D)4.78 years, accept

Quizplus · Accepted Answer

The Answer of Compute the payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 9 percent and the maximum allowable payback is four years.

A)3.4375 years, accept 
B)3.78 years, reject 
C)4.4375 years, reject 
D)4.78 years, accept

Compute the Payback Statistic for Project X and Recommend Whether