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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 9 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: $6,500 $1,150 $2,350 $1,550 $1,550 $1,350 $1,150 Use the IRR decision rule to evaluate this project.

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