Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively.

Time 0 1 2 3 4 5

Class Flow -100K 30K 45K 55K 30K 10K

.Use the IRR decision rule to evaluate this project; should it be accepted or rejected and why