Use the npv decision rule to evaluate project

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Reference no: EM131936470

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 2.0 and 3.0 years.

Time: 0. 1. 2. 3. 4. 5. 6

Cash flow: -$7100. 1140. 2340. 1540. 1540. 1340. 1140

Use the npv decision rule to evaluate this project. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round final answer to 2 decimals

Reference no: EM131936470

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