Question
Project Z has an initial cost of $76,636, and its expected net cash inflows are $17,250 per year for 7 years. The firm has a
Project Z has an initial cost of $76,636, and its expected net cash inflows are $17,250 per year for 7 years. The firm has a WACC of 7 percent, and Project Zs risk would be similar to that of the firms existing assets. What is Project Zs payback period?
| a. | 4.15 years | |
| b. | 4.44 years | |
| c. | 4.00 years | |
| d. | 5.00 years | |
| e. | 4.69 years |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
