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Compute the Discounted 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 12 percent and the maximum allowable discounted payback is 3 years.

Time: 0 1 2 3 4 5

Cash Flow -980 330 650 570 470 320

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91618498

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