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A project has an initial cost of $40,000, expected net cash inflows of $12,000 per year...

A project has an initial cost of $40,000, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

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Solutions

Expert Solution

Payback is the number of years it would take for the cash inflows to re-earn cash outflow.

Slightly more complex formula structure would have been:

jeff jeffy answered 3 months ago
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