Problem $13-21$ NPV $($LG$13-3)$

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 $8$ percent, and that the maximum allowable payback and discounted payback statistics for the project are $2\mathrm{.}0$ and $3\mathrm{.}0$ years, respectively.

Time: $0123456$

Cash flow: $$$$7,500$ $$1,180$ $$2,380$ $$1,580$ $$1,580$ $$1,380$ $$1,180$

Use the NPV decision rule to evaluate this project. $($Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to $2$ decimal places.$)$

Should it be accepted or rejected?

multiple choice

rejected

accepted