The maximum allowable payback and discounted payback


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 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 and 3.5 years, respectively. Time: 0 1 2 3 4 5 Cash flow –$240,000 $66,300 $84,500 $141,500 $122,500 $81,700 Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The maximum allowable payback and discounted payback
Reference No:- TGS02722457

Expected delivery within 24 Hours