Project K costs 40000 its expected cash inflows are 15000 pe
Project K costs $40,000, its expected cash inflows are $15,000 per year for 11 years, and its WACC is 11%. What is the project\'s payback? Round your answer to two decimal places.
Solution
project\'s payback=Initial investment/Annual cash flows
which is equal to
(40000/15000)
=2.67 years(Approx).
