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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

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 2.5 and 3.5 years, respectively.
 









Time:0123456
Cash flow:−$4,600$1,120$2,320$1,520$1,520$1,320$1,120


Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)


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