Accompanying cash flows

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Suppose your firm is considering investing in a project with the accompanying cash flows, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively.

Time:                              0                         1                        2                3                 4                      5

Cashflow                       -$175,000            -$65,800             $94,000      $41,000       $122,000          $81,200

Choose any one of the capital budgeting decision methods discussed Chapter 13, evaluate this project and decide whether the project should be accepted or not based on the capital budgeting method you use. Please show how you calculate a variable: NVP

Reference no: EM131489004

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