Question

In: Finance

Problem 10-05 Payback A project has an initial cost of $56,425, expected net cash inflows of...

Problem 10-05
Payback

A project has an initial cost of $56,425, expected net cash inflows of $13,000 per year for 9 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places.

Solutions

Expert Solution

Initial cost = $56,425

Net cash inflows = $13,000

Period = 9 years

Cost of capital = 12%


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