Question
Project K has an initial cost of $31,641, and its expected net cash inflows are $6,500 per year for 7 years. The firm has a
Project K has an initial cost of $31,641, and its expected net cash inflows are $6,500 per year for 7 years. The firm has a WACC of 7 percent, and Project Ks risk would be similar to that of the firms existing assets. What is Project Ks payback period?
| a. | 4.59 years | |
| b. | 4.00 years | |
| c. | 4.33 years | |
| d. | 5.00 years | |
| e. | 4.87 years |
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
