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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

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 2.0 and 3.0 years, respectively.

Time: 0 1 2 3 4 5 6
Cash flow: $4,600 $1,120 $2,320 $1,520 $1,520 $1,320 $1,120

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

Should it be accepted or rejected? multiple choice

rejected

accepted

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