Suppose your firm is considering investing in a project with the cash flows shown below, that the
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Question:
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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively.
Time: 0 1 2 3 4 5 6 Cash flow -$5,200 $1,290 $2,490 $1,690 $1,690 $1,490 $1,290
Use the PI decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
PI
Should it be accepted or rejected?
RejectedAccepted
Posted Date: