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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 Summary

Response helps in discussing and evaluating Payback Period

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Step 1 - Find out Initial Investments

NPV= Present value of Future cash flow- Initial Investments

Here Present value of future cash ...

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