Considering investing in project with cash flows

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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 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.

Time: 0 1 2. 3. 4. 5. 6

Cash flow -4800. 1210. 2410. 1610. 1610. 1410. 1210.

Use the PI decision rule to evaluate this project (round to 2 decimals)

Reference no: EM131936476

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