Evaluate this project and provided calculations

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Question - 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 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively.

Cash flow

Time 0 - $235,000

Time 1 $65,800

Time 2 $84,000

Time 3 $141,000

Time 4 $122,000

Time 5 $81,200

Use the IRR decision rule to evaluate this project and provided calculations; should it be accepted or rejected and explain why?

Reference no: EM132786451

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