In: Finance
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.
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 |