Firm is considering investing in project with cash flows

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Reference no: EM132008879

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 13 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time 0 1 2 3 4 5 6 Cash Flow -1,160 20 580 780 780 380 780 Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected? 3.31 years, reject 3.45 years, reject 2.61 years, accept 2.69 years, accept.

Reference no: EM132008879

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