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: 0 1 2 3 4 5 6 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. Note: Round your answer to 2 decimal places. Payback years Should it be accepted or rejected? (Click to select) ✓

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business dur…