5. 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 statistic for the project are three and three and a half years, respectively. . Use the NPV decision rule to evaluate this project; should it be accepted or rejected and why?

Time 0 Cash flow -100000

Time 1 Cash flow 30,000

Time 2 Cash Flow 45,000

Time 3 Cash Flow 55,000

Time 4 Cash Flow 30,000

Time 5 Cash Flow 10,000

Cash Flow