Compute the discounted payback statistic for Project C if the appropriate cost of capital is 9 percent and the maximum allowable discounted payback period is three years.

The discounted payback period is a measure of the length of time it takes for an investment to break even, taking into account the time value of money.

To calculate the discounted payback period for Project C, we need to determine the point at which the cumulative discounted cash flows equals the initial investment.

Here is the steps to calculate the discounted payback period for Project C with the given data:

1. We will first calculate the discounted cash flows for each year using the formula: Cash flow in year i / (1+r)^i where i is the year number, Cash flow in year i is the cash flow in that year and r is the discount rate (cost of capital)
2. We will then calculate the cumulative discounted cash flows by adding the discounted cash flows of each year
3. We will find the first year where cumulative discounted cash flows equals or exceeds the initial investment.

So in this case, if the appropriate cost of capital is 9 percent and the maximum allowable discounted payback period is three years, you would need to look at the cash flows of the project for the first three years, use the formula above to find the discounted cash flows and the cumulative discounted cash flows for each year and see where it exceeds the initial investment. If it exceeds the initial investment within