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Question 17 1 pts Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of
Question 17 1 pts Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and three and a half years, respectively. Use the payback decision to evaluate this project; should it be accepted or rejected? Time 0 1 2 3 4 5 6 Cash -$85,000 Flow $12,000 $11,000 $13,000 $21,000 $31,000 $32,000 Payback = 5.80 years; reject Payback > 6.00 years, reject Payback = 4.40 years; reject Payback = 4.90 years; reject
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