In: Finance
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
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.