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 3.5 and 4.5 years, respectively.

Time:	0	1	2	3	4	5	6
Cash flow:	$5,100	$1,240	$2,440	$1,640	$1,560	$1,440	$1,240

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

Should it be accepted or rejected?

• rejected

• accepted