Connect Only Problem $13-9$ Payback $($LG$13-2)$

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 payback and discounted payback statistics for the

project are $2\mathrm{.}5$ and $3\mathrm{.}5$ years, respectively.

Use the payback decision rule to evaluate this project.

Note: Round your answer to $2$ decimal places.

Payback

years

Should it be accepted or rejected?

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