Project L costs $35,000, its expected cash inflows are $11,000 per year for 12 years, and its WACC is 12%

Finance Dec 02, 2020

Project L costs $35,000, its expected cash inflows are $11,000 per year for 12 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places. years

Expert Solution

Project payback period is the time required to recover initial investment using annual cash inflows

Project payback period = Cost of project/ Annual cash inflow.

Payback period =35000/11000=3.18 years

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