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 paycheck and discounted payback statistics for the project are 3.5 and 4.5 years.
Time: 0. 1. 2. 3. 4. 5. 6
Cash flow: -$4800. 1210. 2410. 1610. 1530. 1410. 1210
Use the payback decision rule to evaluate this project. Round to 2 decimals
Payback