What is the payback period for the following project? Note - "O" indicate negative numbers

Finance Nov 24, 2020

What is the payback period for the following project? Note - "O" indicate negative numbers. CFO ($28,000) $3,500 CF1 CF2 $7,500 CF3 $10,500 CF4 $11,000 Please enter your answer to two decimal places.

Expert Solution

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Press CF Button, CFo = -28,000 (This is the Initial Outflow

Press Down arrow key, CO1 = 3,500 (Inflow from project after end of year 1)

Like this fill CO2=7,500, CO3=10,500, and CO4 = 11,000

Press NPV Button,

Press Down arrow key, press CPT, PB = 3.59

The payback period of the following project is 3.59 years.

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