Project expected net cash flows

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You are the financial analyst for the Glad It's Finally Over Company. The director of capital budgeting has asked you to analyze a proposed capital investment. The project has a cost of $35,000 and the cost of capital is 7.5%. The project's expected net cash flows are as follows:

Year

Expected Net Cash Flow

0

($35,000)

1

$14,500

2

$11,000

3

$11,000

4

$5,000

If the cash inflows are received throughout the year, the payback period given this scenario is _____ years (Fill in the blank with your calculation result of two decimal places).

Reference no: EM133062300

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