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Problem:

Warnock Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC: 10.00%
Year 0 1 2 3
Cash flows -$950 $500 $400 $300

The NPV is 60.52, but what I would like to know is:

Required:

Question: What is the project's payback? Calculate payback period (x.xx years).

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148625

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