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 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0
years, respectively.
Time: 0 1 2 3 4 5 6
Cash flow: -$7,300 $1,160 $2,360 $1,560 $1,560 $1,360 $1,360
Use the NPV decision rule to evaluate this project.
Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer
to 2 decimal places.
NPV
Should it be accepted or rejected?
