Firm is considering investing in project

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Reference no: EM131914998

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 3.0 and 3.5 years, respectively. Time: 0 1 2 3 4 5 Cash flow –$238,000 $66,100 $84,300 $141,300 $122,300 $81,500 Use the payback decision rule to evaluate this project.

Reference no: EM131914998

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