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