A firm with a 12.5 percent cost of capital is considering a…
A firm with a 12.5 percent cost of capital is considering a project for this year’s capital budget. The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$6,000 $2,500 $2,900 $2,800 $2,100 Calculate the project’s payback period.