Kizspy | Question: 13
(Choose 1 answer)
Jamaica Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate
cash flows of $2 million, $3 million, $4 million, and $5 million over the next four years. Its cost of capital is 16
percent. What is the payback period for this project? (Round your answer to one decimal place.)
A. 2.7 years
B. 2.9 years
C. 3.1 years
D. 3.4 years
