. 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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half four and a half years, respectively.

Time	0	1	2	3	4	5	6
Cashflow	-5000	1300	1400	1600	1600	1100	2000

Use the payback decision to evaluate this project; should it be accepted or rejected? What is the payback period? 11. A. What is the firms breakeven point in units? B. Draw a breakeven chart for this firm. FC = 20 P = 2 VC = .80