The board of directors of Halliburton International just approved an $18 million world-wide engineering construction design contract. The services are expected to generate new annual net revenue of $3 million. The contract has a potentially lucrative repayment clause or cancellation value (CV) of $3 million paid to Halliburton at any time the contract is canceled during the 10 years of the contract period. Calculate the payback period, assuming a cancelled contract with the CV occurring at the payback period. Use MARR = 10%. Round your response to the nearest tenth of a year.

Part 1. Payback Equation:_______

Part 2. PW Calculations:_______

Part 3. Interpolation work:______

Part 4. Payback Period: _________

10% n F/P P/F A/F A/P 1 1.1000 0.9091 1.0000 1.1000 2 1.2100 0.8264 0.4762 0.5762 3 1.3310 0.7513 0.3021 0.4021 4 1.4641 0.6830 0.2155 0.3155 5 1.6105 0.6209 0.1638 0.2638 6 1.7716 0.5645 0.1296 0.2296 7 1.9487 0.5132 0.1054 0.2054 8 2.1436 0.4665 0.0874 0.1874 9 2.3579 0.4241 0.0736 0.1736 10 2.5937 0.3855 0.0627 0.1627 F/A P/A 1.0000 0.9091 2.1000 1.7355 3.3100 2.4869 4.6410 3.1699 6.1051 3.7908 7.7156 4.3553 9.4872 4.8684 11.4359 5.3349 13.5795 5.7590 15.9374 6.1446 10% n F/P P/F A/F A/P 1 1.1000 0.9091 1.0000 1.1000 2 1.2100 0.8264 0.4762 0.5762 3 1.3310 0.7513 0.3021 0.4021 4 1.4641 0.6830 0.2155 0.3155 5 1.6105 0.6209 0.1638 0.2638 6 1.7716 0.5645 0.1296 0.2296 7 1.9487 0.5132 0.1054 0.2054 8 2.1436 0.4665 0.0874 0.1874 9 2.3579 0.4241 0.0736 0.1736 10 2.5937 0.3855 0.0627 0.1627 F/A P/A 1.0000 0.9091 2.1000 1.7355 3.3100 2.4869 4.6410 3.1699 6.1051 3.7908 7.7156 4.3553 9.4872 4.8684 11.4359 5.3349 13.5795 5.7590 15.9374 6.1446