Should be accepted or rejected and explain why

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Reference no: EM132770356

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 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively.

Cash flow
Time 0 -$235,000
Time 1 $65,800
Time 2 $84,000
Time 3 $141,000
Time 4 $122,000
Time 5 $81,200

Problem 1: Use the IRR decision rule to evaluate this project and provided calculations; should it be accepted or rejected and explain why?

Reference no: EM132770356

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