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The Bingo Corporation: Payback Period

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The Bingo Corporation is considering a project which has an up-front cost paid today at t=0. The project will generate positive cash flows of $85,000 a year at the end of each of the next five years. The project's NPV is $100,000 and the company's WACC is 10 percent . What is the project's simple, regular payback?

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Solution Summary

A project's simple, regular payback period is calculated.

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Given that,
NPV $100,000
WACC 10%
Year Cash inflow Cummulative ...

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