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 2.0 and 3.0 years, respectively.

Time: 0 1 2 3 4 5 6

Cash flow -$4,900 $1,190 $2,390 $1,590 $1,590 $1,390 $1,190

Use the discounted payback decision rule to evaluate this project.(Round your answer to 2 decimal places.)

Discounted paybackyears

Should it be accepted or rejected?

Rejected

Accepted