In: Finance
Project L costs $45,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 11%. What is the project's payback? Round your answer to two decimal places.
years
Ordinary payback is 4 years.
With WACC of 11% as discount rate, discounted payback period= 7.66 years
Calculation as follows: