Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million.

Question:

Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flow of $13,000,000 $23,000,000 and $29,000,000 over the next three years. The cost of capital is 20%. What is the payback period for this project?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...