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).

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

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