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 |