In: Finance
A project has an initial cost of $45,925, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places.
Solution :
The payback period of the project is = 3.28 years
The discounted payback period of the project is = 4.56 years
Please find the attached screenshots of the excel sheet containing the detailed calculation for the solution.