What is the projects payback if the firms tax bracket is 35


1. Project L costs $55,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 11%. What is the project's payback? Round your answer to two decimal places.

2. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,140. If the firm’s tax bracket is 35%, what is its percentage cost of debt? Assume a face value of $1,000.

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Financial Management: What is the projects payback if the firms tax bracket is 35
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