Question: Davis Corporation is considering a project which has an up-front cost paid today (at t = 0). The project will generate positive cash flows of

Davis Corporation is considering a project which has an up-front cost paid today (at t = 0). The project will generate positive cash flows of $50,000 a year at the end of each of the next six years. The project's NPV is $80,000 and the company's cost of capital is 10%. What is the project's payback period?

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