Use discounted payback decision rule to evaluate project

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Reference no: EM131972619

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 3.0 and 3.5 years, respectively. Time: 0 1 2 3 4 5 Cash flow –$241,000 $66,400 $84,600 $141,600 $122,600 $81,800 Use the discounted payback decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Discounted payback years.

Reference no: EM131972619

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