A 30 Year Project Is Estimated to Cost $35 Million

Multiple Choice

A 30 year project is estimated to cost $35 million and provide annual cash flows of $5 million per year in years 1-5; $4 million per year in years 6-20 and $2 million per year in years 21-30. If the
Company's required rate of return is 10%, determine the payback of the project.

A) 6.50 years
B) 7.00 years
C) 7.50 years
D) 8.00 years
E) 8.50 years