aveSubmit Assignment for Grading Questions Problem 110 12 13

aveSubmit Assignment for Grading Questions Problem 11.0 12. 13. O 14 O Click here to read the eBook: Payback Period Question 14 of 20 Check My Work (2 remaining) 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 places 18. 5.41 years 19. Hide Feedback Check My Work (2 remaining) 2 3 4 6

Solution

Payback period =Initial investment /annual cash flow

              = 65000/12000

              = 5.42 years