Project L costs $55,000, its expected cash inflows are $9,000 per year for 9 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places.
Payback period = The year in which the cumulative cash flow was last negative + (the positive value of the cumulative cash flow in that year) / (cash flow in the next year)
Payback period = 6 + 1000/9000
Payback period = 6.1111111111
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