Firm is considering investing in project

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Reference no: EM132037355

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 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow –$7,100 $1,100 $2,300 $1,500 $1,500 $1,300 $1,100 Use the PI decision rule to evaluate this project.

Reference no: EM132037355

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