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Use the irr decision rule to evaluate this project

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Question - 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 8 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: -$5,000 $1,200 $2,400 $1,600 $1,600 $1,400 $1,200

Use the IRR decision rule to evaluate this project.

Reference no: EM132756893

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