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 $2\mathrm{.}0$ and $3\mathrm{.}0$ years, respectively.

Use the PI decision rule to evaluate this project. $($Do not round intermediate calculations and round your final answer to $2$

decimal places.$)$

PI

Should it be accepted or rejected?

rejected

accepted