Creative Solutions, Inc., has just invested $4,189,600 in new equipment. The firm uses a payback period criteria of not accepting any project that takes more than four years to recover its costs. Management anticipates cash flows of $782,700, $1,013,000, $1,046,800, $1,203,500, $2,225,900, and $1,704,700 over the next six years. (Round answer to 2 decimal places, e.g. 15.25.)
What is the payback period of this investment?
Payback period is ___________ years.
Should Creative Solutions, Inc. go ahead with this project?
The firm ( should not have been accepted / or / should be accepted) the project.