Project L requires an initial outlay at t = 0 of $66,000, its expected cash inflows are $13,000 per year for 7 years, and its WACC is 12%

Finance Dec 23, 2020

Project L requires an initial outlay at t = 0 of $66,000, its expected cash inflows are $13,000 per year for 7 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places.

Expert Solution

Payback period = Initial outlay / Expected cash inflows

Payback period = $66,000 / $13,000

Payback period = 5.07 years

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote