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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 9 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.

Time: 0 1 2 3 4 5 6

Cash Flow: -880 180 460 660 660 260 660

Use the PI decision rule to evaluate this project; should it be accepted or rejected?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92678499

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