Considering investing in project with the cash flows

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Reference no: EM131074615

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 12 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time 0 1 2 3 4 5 6 Cash Flow -720 100 540 740 740 340 740 Use the PI decision rule to evaluate this project; should it be accepted or rejected? -189.00%, reject 1.89%, accept 1.89%, reject 189.53%, and accept

Reference no: EM131074615

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