Question
In: Finance
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 2 months agoRelated Solutions
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(10-2) Refer to Problem 10-1. What is the project’s IRR?
(10-3) Refer to Problem 10-1. What is the project’s MIRR?
(10-4) Refer to Problem 10-1. What is the project’s PI?
(10-5) Refer to Problem 10-1. What is the project’s payback
period?
(10-6)...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year...
A project has an initial cost of $40,000, expected net cash
inflows of $9,000 per year for 9 years, and a cost of capital of
11%. What is the project's discounted payback period? Round your
answer to two decimal places.
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