Question
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of
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 3.5 and 4.5 years, respectively. Time: A 1 2 3 4 5 6 Cash flow: -$5,100 $1,280 $2,480 $1,680 $1,680 $1,480 $1,280 Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) NPV
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