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 2.0 and 3.0 years, respectively.

Use the IRR decision rule to evaluate this project.

Time: Cash flow:-6,200 $1,030 $2,230 $1,430 $1,430 $1,230 1,030 2 4