Question
Project L has an initial cost of $34,748, and its expected net cash inflows are $9,750 per year for 8 years. The firm has a
Project L has an initial cost of $34,748, and its expected net cash inflows are $9,750 per year for 8 years. The firm has a WACC of 14 percent, and Project L’s risk would be similar to that of the firm’s existing assets. What is Project L’s payback period?
| a. | 3.34 years | |
| b. | 3.00 years | |
| c. | 3.56 years | |
| d. | 3.13 years | |
| e. | 4.00 years |
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Linear Algebra And Its Applications
Authors: David Lay, Steven Lay, Judi McDonald
6th Global Edition
978-1292351216, 1292351217
