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ABC Corporation's Project: The Project's Simple, Regular Payback

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The ABC Corporation is considering a project which has an up-front cost paid today at t = 0. The project will generate positive cash flows of $70,000 a year at the end of each of the next five years. The project's NPV is $90,000 and the company's WACC is 12 percent. What is the project's simple, regular payback?

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The solution determines what is the project's simple, regular payback.

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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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