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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: $ 5,100 $ 1,280 $ 2,480 $ 1,680 $ 1,680 $ 1,480 $ 1,280

Use the discounted payback decision rule to evaluate this project.

Note: Round your answer to 2 decimal places.

Should it be accepted or rejected?

(Click to select) Accepted Rejected

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