Discounted payback years, Use the discounted payback

Discounted payback years

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Reference no: EM131619687

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, respectively. Time: 0 1 2 3 4 5 6 Cash flow –$4,800 $1,210 $2,410 $1,610 $1,610 $1,410 $1,210 Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Discounted payback years Should it be accepted or rejected?

Reference no: EM131619687

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