Question: Conjuring Manufacturing Company is considering a three-year project that has a cost of $75,000. The project will generate after-tax cash flows of $33,278 in Year

Conjuring Manufacturing Company is considering a three-year project that has a cost of $75,000. The project will generate after-tax cash flows of $33,278 in Year 1, $31,668 in Year 2, and $31,200 in Year 3. Assume that the firm's proper rate of discount is 10% and that the firm's tax rate is 40%.

What is the project's payback (in years)?

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