**CANNOT USE EXCEL TO SOLVE. CAN USE CALCULATOR FUNCTIONS. PLEASE SHOW ALL STEPS AND CALCULATOR SHORT CUTS.
Project Y has an initial cost of $58,591, and its expected net cash inflows are $12,250 per year for 9 years. The firm has a WACC of 8 percent, and Project Y’s risk would be similar to that of the firm’s existing assets. What is Project Y’s payback period?
a.
5.00 years
b.
4.78 years
c.
4.35 years
d.
4.00 years
e.
4.57 years