Haig Aircraft Is Considering a Project Which Has an Up-Front

Multiple Choice

Haig Aircraft is considering a project which has an up-front cost paid today at t = 0. The project will generate positive cash flows of $60,000 a year at the end of each of the next five years. The project's NPV is $75,000 and the company's WACC is 10 percent. What is the project's simple, regular payback?

A) 3.22 years
B) 1.56 years
C) 2.54 years
D) 2.35 years
E) 4.16 years