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Payback Compute the payback statistic for Project A and recommend whether the firm should accept or...

Payback Compute the payback statistic for Project A 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 8 percent and the maximum allowable payback is four years.

                        Project A

            Time

0

1

2

3

4

5

Cash Flow

-$1,000

$350

$480

$520

$300

$100

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year cash flows cumulative cash flows 0 -$1,000 $1,000 1 $350 -$650 2 $480 -$170 3 $520 $350 52 4 $300 $650 5 $100 $750 Payba

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