Question

In: Finance

A project has an initial cost of $48,650, expected net cash inflows of $11,000 per year...

A project has an initial cost of $48,650, expected net cash inflows of $11,000 per year for 7 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

Solutions

Expert Solution

Project's Payback Period
Project's Payback Period = Initial Investment Cost / Annual cash inflow
Project's Payback Period = $48,650 / $11,000
Project's Payback Period = 4.42 Years
The Project's Payback Period will be 4.42 Years

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