Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 9 percent and the maximum allowable payback is 4 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 below if the appropriate cost of capital is 9 percent and the maximum allowable payback is 4 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 below if the appropriate cost of capital is 9 percent and the maximum allowable payback is 4 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