27

Oaktree Computers has a WACC of 1.75% and is considering a project with the following cash flows: Year 0 Year 1 Year 2 Year 3 Year 4 $1.75 billion $595 million $550 million $1.09 billion Calculate the (simple, not discounted) payback period of this project. 2.79 years 3.79 years 3.69 years 2.89 years 2.69 years