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

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7. Suppose your firm is considering investing in a project with the cash flows shown as follows, the required rate of return on projects of this risk class is 8 percent, and that the maximum allowabl payback and discounted payback statistic for the project are three and three and a half years, respectively. Use the PI decision rule to evaluate this project; should it be accepted or rejected? A. -0.39 percent, reject B. 0.39 percent, accept C. -38.88 percent, reject D. 38.88 percent, accept

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