Firm is considering investing in project with the cash flows

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Reference no: EM131914482

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 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow –$5,100 $1,240 $2,440 $1,640 $1,640 $1,440 $1,240 Use the discounted payback decision rule to evaluate this project.

Reference no: EM131914482

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