In: Finance
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.
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 |