Problem 13-10 Spreadsheet Problem: Discounted Payback (LG13-2) Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 a 3.5 years, respectively. Time: Cash flow 0 2 -$245,000 $66,800 $85,000 $142,000 Use the discounted payback decision rule to evaluate this project. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Answer is complete but not entirely correct. Discounted payback 3.23 years 4 $123,000 $82,200 Should it be accepted or rejected?

Problem 13-10 Spreadsheet Problem: Discounted Payback (LG13-2) Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on project this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 3.5 years, respectively. Use the discounted payback decision rule to evaluate this project. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Answer is complete but not entirely correct. \begin{tabular}{l|r} \hline \begin{tabular}{l} Discounted \\ payback \end{tabular} & 323 \\ \hline \end{tabular} Should it be accepted or rejected