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Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of
Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are two and two and a half years, respectively. Time 0, 1, 2, 3, 4, 5 Cash Flow: -125,000/ 65,000, 78,000, 105,000, 105,000, 25,000 Use the NPV decision rule to evaluate this project; should it be accepted or rejected? Calculate the NPV
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