Quick Quiz . Consider an investment that costs $150,000 and has a cash inflow of $38,500 every year for 6 years and in 7th year the cash flow is $2,000. The required return is 15% and required payback is 3 years. . What is the payback period? . What is the NPV? What is the IRR? . Should we accept the project? What decision rule should be the primary decision method? When is the IRR rule unreliable? 69