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    Payback Period

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    Payback Period
    Haig Aircraft is considering a project which has an up front cost paid today at t=0. the project will generate positive csh flow of 60,000 a yr at the end of each of the next five yrs. The project's NPV is 75,000 and the company's WACC is 10%. What is the project 's simple, regular payback?

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    Solution Preview

    Step 1 - Find out Initial Investments

    NPV= Present value of Future cash flow- Initial Investments

    Here Present value of future cash ...

    Solution Summary

    Response helps in discussing and evaluating Payback Period