Payback period Project K costs $70,000, its expected cash inflows are $8,000 per year for 12...

Payback period Project K costs $70,000, its expected cash inflows are $8,000 per year for 12 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

Expert Solution

PBP
Time	Amount	Cumulative
-	(70,000.00)	(70,000.00)
1.00	8,000.00	(62,000.00)
2.00	8,000.00	(54,000.00)
3.00	8,000.00	(46,000.00)
4.00	8,000.00	(38,000.00)
5.00	8,000.00	(30,000.00)
6.00	8,000.00	(22,000.00)
7.00	8,000.00	(14,000.00)
8.00	8,000.00	(6,000.00)
9.00	8,000.00	2,000.00
10.00	8,000.00	10,000.00
11.00	8,000.00	18,000.00
12.00	8,000.00	26,000.00

PBP= 8 + 6000/8000
PBP= 8 + .75 Years
PBP= 8.75 Years

jeff jeffy answered 2 years ago

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Payback period Project K costs $70,000, its expected cash inflows are $8,000 per year for 12...

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