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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: Cash flow: 0 -$5,200 $1,250 1 2 $2,450 3 4 $1,650 $1,650 5 $1,450 6 $1,250 Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) NPV
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