Firm is considering investing in project with cash flows

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Reference no: EM131978702

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 10 percent, and 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 -$351,000 $66,000 $85,000 $142,000 $123,000 $82,200

Use the PI decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131978702

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