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10. Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects

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10. Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half four and a half years. respectively. Use the payback decision to evaluate this project: should it be accepted or rejected? What is the payback period? Time -$5,000 1,300 S1.400 1.600 1,6001,100$2.000 Flow 11. A. What is the firms breakeven point in units? B. Draw a breakeven chart for this firm. FC 20 P-2 VC .80

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