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Please Show the steps to reproduce the result Your firm is investing in a new project. The project has a cost of $120. The expected

Please Show the steps to reproduce the result

Your firm is investing in a new project. The project has a cost of $120. The expected incremental free cash flow in year 1 is $60. The expected incremental free cash flow in year 2 is $68 and the expected incremental free cash flow in year 3 is $76. The project has a required rate of return of 8% compounded annually. What is the payback period in years. Your answer should be accurate to two decimal places.

Answer: 1.88

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