Payback and discounted payback statistic for the project

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Reference no: EM13920033

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 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 -1,070 100 500 700 700 300 700 Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected? 2.92 years, accept 2.83 years, accept 3.08 years, reject 3.09 years, reject

Reference no: EM13920033

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