Assume the following project cash flows:
Year Cash Flow
0 264,300
1 0
2 50,000
3 150,000
4 200,000
5 200,000
Would you accept or reject this project if your required rate of return is 14% and your decision criteria is a four-year discounted payback?
a. Accept
b. Reject
c. Indifferent (the discounted inflows are exactly or very nearly equal to the Investment)
d. Insufficient information (cannot make a decision)