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 $7$ percent, and that the maximum allowable payback and discounted payback statistics for the project are $3\mathrm{.}5$ and $4\mathrm{.}5$ years, respectively.

Time in years: $0123456$

Cash flow: $$$$5,000$ $$1,270$ $$2,470$ $$1,670$ $$1,590$ $$1,470$ $$1,270$

Use the payback decision rule to evaluate this project