Compute the discounted payback statistic for project x and, Ask an Expert

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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 11 percent and the maximum allowable discounted payback is 3 years.

Time: 0 1 2 3 4 5

Cash flow: -990 490 490 410 310 160

3.50 years, reject

3.01 years, reject

2.50 years, accept

5.01 years, reject

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92270848

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