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What is the simple, regular payback, of a project with an NPV of $75,000 and a WACC of 10%?

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A company is considering a project which has an up front cost paid today at t=0. The project will generate positive cash flows of 60,000 a year at the end of each of the next five years.

The project's NPV is 75,000 and the company WACC is 10 percent. What is the project's simple, regular payback?

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Solution Summary

Based on NPV and WACC, a project's regular payback period is calculated.

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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