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 and four and a half years, respectively. Use the PI decision to evaluate this project; should it be accepted or rejected?

Time $0123456$

Cash Flow $$$ $5,000$ $ $1,200$ $ $1,400$ $ $1,600$ $ $1,600$ $ $1,100$ $ $2,000$