ssignment Module 5 Homework Assignment Score 000 ave Submit

ssignment: Module 5 Homework Assignment Score 0.00 ave Submit Assignment for Grading e Question 14 of 20 Questions Problem 11.0 12. 13. O 14. Check My Work (3 remaining) Click here to read the eBook: Payback Period PAYBACK PERIOD 15. Project L costs $65,000, its expected cash inflows are $12,000 per year for 6 years, and its wACC is 11%. What is the project\'s payback? Round your answer to two decimal 16. O o places. 19. 20. Check My Work (3 remaining) esc is 4

Solution

Initial Investment = $65,000
Annual Cash Inflow = $12,000

Payback Period = Initial Investment / Annual Cash Inflow
Payback Period = $65,000 / $12,000
Payback Period = 5.41 years

So, payback period of this project is 5.41 years