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suppose your firm is considering investing in a project with the accompanying cash flows, that the required rate

of return on projects of this risk class is 11%, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years respectively.

Time Cash Flow

0 -175,000

1 -65,800

2 94,000

3 41,000

4 122,000

5 81,200


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 the project

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