You are evaluating a project with an initial investment of 1

You are evaluating a project with an initial investment of $18.9 million dollars, and expected cash flows of $9 million dollars each for years 1-3. What is the project\'s simple payback? The corporate WACC is 14%.

Solution

What is the project\'s simple payback

=initial investment/annual payment

=18.9/9

=2.10 years

the above is answer..