Question: Assume the following project cash flows:

Year         Cash Flow

0              264,300

1                   0

2               50,000

3              150,000

4              200,000

5              200,000

Would you accept or reject this project if your required rate of return is 14% and your decision criteria is a four-year discounted payback?

a. Accept

b. Reject

c. Indifferent (the discounted inflows are exactly or very nearly equal to the Investment)

d. Insufficient information (cannot make a decision)