Question $7$

$1$ pts

You are evaluating a new project that requires an initial investment required of $$67,810\mathrm{.}15.$ You have estimated the cost of capital as $9\%.$ Expected cash flows over the next four years are given below:

$\backslash$table$[[$Years$,$Cash Flow $($$$)],[1,13,000],[2,33,500],[3,14,800],[4,46,000]]$

What is the PB of the project? Will you accept the project based on the PB method if the threshold is $3\mathrm{.}7$ years?

$3\mathrm{.}4$ years. The project will NOT be accepted.

$3\mathrm{.}3$ years. The project will be accepted.

$2\mathrm{.}9$ years. The project will NOT be accepted.

$2\mathrm{.}8$ years. The project will be accepted.

$3\mathrm{.}1$ years. The project will be accepted.