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Suppose your firm is considering investing in a project with the cash flows shown as follows, that the req rate of return on projects of
Suppose your firm is considering investing in a project with the cash flows shown as follows, that the req 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 1 2 3 4. 5 0 -100 Cash Flow 30 45 55 30 10 Use the PI decision rule to evaluate this project; should it be accepted or rejected? O 1.39, accept 0.39, accept -0.39, reject 38, accept
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