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.
Time: 0 1 2. 3. 4. 5. 6
Cash flow -4800. 1210. 2410. 1610. 1610. 1410. 1210.
Use the PI decision rule to evaluate this project (round to 2 decimals)