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 -5,000 1,270 2,470 1,670 1,670 1,470 1,270
Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)
| 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 | -5,000 | 1,270 | 2,470 | 1,670 | 1,670 | 1,470 | 1,270 |
| Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
Related questions
| 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 | â$5,200 | $1,290 | $2,490 | $1,690 | $1,690 | $1,490 | $1,290 |
| Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
| Discounted payback | years |
| Should it be accepted or rejected? |
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