Suppose your firm is considering investing in a project with the cash flows shown as follows, 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 and 3.5 years, respectively.

Using every one of the capital budgeting decision methods discussed in this chapter, evaluate this project, indicating whether each decision rule would call for acceptance or rejection of theproject.

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Time Cash Flow 175,000 -$65,800 $94,000 S41,000 $122,000 $81,200