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Compute the Payback Statistic for Project Y and Recommend Whether

Question 95

Multiple Choice

Compute the Payback statistic for Project Y 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 payback is 1 years. Compute the Payback statistic for Project Y 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 payback is 1 years. A) 1.25 years, reject B) 1.25 years, accept C) 1.33 years, accept D) 2.25 years, accept


A) 1.25 years, reject
B) 1.25 years, accept
C) 1.33 years, accept
D) 2.25 years, accept

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