Evaluate project using the npv decision rule

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Reference no: EM13113357

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 2.5 years, respectively.

Time 0 1 2 3 4 5
Cash Flow -125,000 65,000 78,000 105,000 105,000 25,000

Use the NPV decision rule to evaluate this project; should it be accepted or rejected?

Reference no: EM13113357

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