Compute the payback statistic for Project B if the appropriate cost of capital

Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years. (Round your answer to 2 decimal places. If the project never pays back, then enter a “0” (zero).)

Project B
Time: 0 1 2 3 4 5
Cash flow –$12,500 $3,500 $4,480 $1,820 $0 $1,300
Payback years

Should the project be accepted or rejected?

Accepted
Rejected

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