Question

Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)
 

Project A            
Time: 0 1 2 3 4 5
Cash flow: −$1,400 $510 $600 $600 $380 $180

Payback years: _______.__

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