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4.   Suppose your firm is considering investing in a project with the cash flows shown as...

4.   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 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are two and two and .25 years respectively.

Time Years   0       1   2   3   4   5   6
Cash Flow   -150,000   30,000   50,000   45,000 25000   35000   10000  
    Use the payback decision rule to evaluate this project; should it be accepted or rejected?

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