2. Finance
3. suppose your firm is considering investing in a project with...

# Question: suppose your firm is considering investing in a project with...

###### Question details

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: –$4,800$1,210 $2,410$1,610 $1,610$1,410 \$1,210

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

Should it be accepted or rejected?

• accepted

• rejected