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)?

Answer rating: 100% (QA)

To calculate the payback period for the project we need to determine the time it takes for the cumul... View the full answer