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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 this risk
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 statisticsfor the project are 3.5 and 4.5 years respectively. 0 -4900,1 1220,2 2420,3 1620,4 1620,5 1420,6 1220. Use the PI decision rule to evaluate this project.
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