Problem 13-21 NPV (LG13-3)

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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.

Time:	0	1	2	3	4	5	6
Cash flow	$7,300	$1,120	$2,320	$1,520	$1,520	$1,320	$1,120

Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

NPV

$

Should it be accepted or rejected?

	Accepted
	Rejected