Question

Compute the payback statistic for Project B if the appropriate cost of capital is 11 percent...

Compute the payback statistic for Project B if the appropriate cost of capital is 11 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).)

Project B
Time: 0 1 2 3 4 5
Cash flow: –$11,700 $3,420 $4,320 $1,660 $0 $1,140

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

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