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 $9$ percent, and that the maximum allowable payback and discounted payback statistics for the project are $2\mathrm{.}5$ and $3\mathrm{.}5$ years, respectively.

Time: $0123456$

Cash flow: $$$ $4,900$ $ $1,190$ $ $2,390$ $ $1,590$ $ $1,590$ $ $1,390$ $ $1,190$

Use the payback decision rule to evaluate this project.