Calculate payback period

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Reference no: EM13273722

Warnock Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC: 10.00%
Year 0 1 2 3
Cash flows -$950 $500 $400 $300
The NPV is 60.52, but what I would like to know is:
What is the project's payback? Calculate payback period (x.xx years).
Please show me the steps on how to calculate payback period. Thank you

 

Reference no: EM13273722

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