The Bingo Corporation: Payback Period
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?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/the-bingo-corporation-payback-period-7e83
1 $85,000 $85,000
2 $85,000 $170,000
3 $85,000 $255,000 ...