# Problem 13-7 Discounted Payback (LG13-2)Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project C      Time:012345Cash flow:–\$1,400\$640\$600\$640\$380\$180      Should the project be accepted or rejected?  acceptedrejected

Question
Asked Dec 5, 2019
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## Problem 13-7 Discounted Payback (LG13-2)

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

 Project C Time: 0 1 2 3 4 5 Cash flow: –\$1,400 \$640 \$600 \$640 \$380 \$180

Should the project be accepted or rejected?

• accepted
• rejected

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## Expert Answer

Step 1

Calculation of Discounted Payback Period:

The discounted payback period is 2.53 years.

Excel Spreadsheet:

Step 2

Excel Workings:

...

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