Investing in a project with the cash flows

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Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are two and two and .25 years respectively.

Time Years 0 1 2 3 4 5 6

Cash Flow -150,000 30,000 50,000 45,000 25000 35000 10000

Use the payback decision rule to evaluate this project; should it be accepted or rejected?

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively.

Use the IRR decision rule to evaluate this project; should it be accepted or rejected? Calculate the IRR

Reference no: EM132507640

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