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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 statistics for the project are 3.5 and 4.5 years. Cash flow: 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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