Considering investing in project with the cash flows

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Suppose your firm is considering investing in a project with the cash flows shown below that the requir d rate of return on projects of this risk 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. Do not round intermediate calculations. Round final answer to 2 decimals.

Reference no: EM131936488

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