Use the payback decision rule to evaluate this project

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Reference no: EM131562535

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 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow –$4,900 $1,260 $2,460 $1,660 $1,580 $1,460 $1,260

Use the payback decision rule to evaluate this project. (round to 2 decimal places)

payback _____ years.

Reference no: EM131562535

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