Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)
| Project A |
|
|
|
|
|
|
| Time: |
0 |
1 |
2 |
3 |
4 |
5 |
| Cash flow |
-$2,500 |
$950 |
$930 |
$820 |
$600 |
$400 |
|
Should the project be accepted or rejected?