KMT inc. is considering investing in a project with the cash flows shown below that the required rate of return on projects of this risk class is 8% and that the maximum allowable payback and discounted payback statistics for the project or 3. 5 and 4. 5 years respectively. Use the IRR rule to evaluate this project. Time Cash Flow 0 -$5000 1 $1200 2 $2400 3 $1600 4 $1600 5 $1400 6 $1200