NARRBEGIN: Exhibit 8-1 Invst Csh Prj

NARRBEGIN: Exhibit 8-1 Invst Csh Prj
Exhibit 8-1
The cash flows associated with an investment project are as follows:

-Refer to Exhibit 8-1.If a firm uses discounted payback with a 15% discount rate and a 3-year cutoff period,what's the discount payback period of the project? Should the firm accept the project?

A) 3.3 years; reject
B) 3.6 years; reject
C) 3.6 years; accept
D) 2.7 years; accept