Question

Project K has an initial cost of $81,996, and its expected net cash inflows are $12,250...

Project K has an initial cost of $81,996, and its expected net cash inflows are $12,250 per year for 10 years. The firm has a WACC of 7 percent, and Project K’s risk would be similar to that of the firm’s existing assets. Calculate the discounted payback period of Project K.

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