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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 10 percent, and that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback for the project is 2.5 years. Time: 0 1 2 3 4 5 Cash flow $250,000 $60,000 $80,000 $140,000 $120,000 $80,000 a. Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) should it be accepted or rejected? IRR % Should it be accepted or rejected? Rejected Accepted b. Use the NPV decision rule to evaluate this project should it be accepted or rejected c. use the PB to evaluate this project, should it be accepted or rejected?

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