Problem $13-27$ NPV $($LG$13-3)$

Suppose your firm 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 $11$ percent, and that the maximum allowable payback and discounted payback statistics for your company are $3\mathrm{.}0$ and

$3\mathrm{.}5$ years, respectively.

Use the NPV decision rule to evaluate this project. $($Do not round intermediate calculations and round your final answer to $2$

decimal places.$)$

NPV

Should it be accepted or rejected?

rejected

accepted