Suppose your firm is considering investing in a project


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 statistic for the project are 2 and 3 years, respectively. Time 0 1 2 3 4 5 6 Cash Flow -960 180 420 620 620 220 620 Use the PI decision rule to evaluate this project; should it be accepted or rejected? 1.09%, accept, -109.00%, reject, 109.90%, accept , 1.09%, reject

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Financial Management: Suppose your firm is considering investing in a project
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