ngcengagecom e wwwi hotmiamis supporttu 12 Check My Work 3 r

ng.cengage.com e www.i hotmiamis... support.tu... 12. Check My Work (3 remaining) 13 Click here to read the eBook: Payback Period PAYBACK PERIOD Project L costs $50,000, its expected cash inflows are $10,000 per year for 7 years, and its WACC is 10%. What is the project\'s payback? Round your answer to two decimal places 15 16. 17 18 20. years

Solution

Payback period is the time when the project recover its original cost.

Since the annual cash inflow is $10000, it will recover the cost of $50000 in 5 Years