Use the pi decision rule to evaluate this project.

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Reference no: EM131968143

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 7 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 –$5,300 $1,300 $2,500 $1,700 $1,700 $1,500 $1,300

Use the PI decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131968143

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