A project that costs $24,500 today will generate cash flows of $8,400 per year for seven...

A project that costs $24,500 today will generate cash flows of $8,400 per year for seven years. What is the project's payback period?

2.33 years
2.92 years
3.00 years
2.43 years
.34 years

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Expert Solution

Solution :

The Project's Payback period = 2.92 years.

The solution is Option 2 = 2.92 years

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 4 months ago

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