What is project payback period

Assignment Help Financial Management

Reference no: EM131924185

1. Project Q has an initial cost of $48,149, and its expected net cash inflows are $11,250 per year for 9 years. The firm has a WACC of 11 percent, and Project Q’s risk would be similar to that of the firm’s existing assets. Calculate the net present value (NPV) of Project Q.

2. Project Y has an initial cost of $30,988, and its expected net cash inflows are $10,750 per year for 5 years. The firm has a WACC of 11 percent, and Project Y’s risk would be similar to that of the firm’s existing assets. What is Project Y’s payback period?

Reference no: EM131924185

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