A project has an initial cost of $35,000, expected net cash inflows of $9,000 per year for 8 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places.

A project has an initial cost of $35,000, expected net cash inflows of $9,000 per year for 8 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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Question

What is the project's payback period on these financial accounting question?

A project has an initial cost of $35,000, expected net cash
inflows of $9,000 per year for 8 years, and a cost of capital
of 13%. What is the project's payback period? Round your
answer to two decimal places.

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