Find the payback period-NPV-IRR and MIRR of project

Assignment Help Financial Management
Reference no: EM13937611

Carolina manufacturing company is considering a new project that will cost $200,000, last for 3 years and will generate cash-flows of $100,000 in year 1; $175,000 in year 2; and $50,000 in year 3, respectively. Carolina's required rate of return is 12 percent on such projects.

Find the (1) payback period, (2)NPV, (3) IRR, and (4) MIRR of this project.

Reference no: EM13937611

Questions Cloud

What is the company EBIT when it performs : Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1310 per unit; variable costs = $336 per unit; fixed costs = $3939947; quantity = 68759 units. Suppose the company believes all of its estimates are acc..
What is ideal gas law who first stated the ideal gas law : What is ideal gas law? Who first stated the Ideal gas law? Give Ideal gas equation. Which theory can be used to derive Ideal gas law? Give the molar form of Ideal gas law.
Internal conflict and explain the character choice : Choose a character from Wilson 's Fences that face an internal conflict and makes a difficult  choice /decision. Without merely summarizing ,describe the internal conflict and explain the character's choice and explain how it connects to the work ..
Impersonal policing vs community policing : Assignment: Impersonal Policing vs. Community Policing, Is there a possibility of corruption when officers develop working or friendly relationships with members of the public as part of a community policing strategy? Why
Find the payback period-NPV-IRR and MIRR of project : Carolina manufacturing company is considering a new project that will cost $200,000, last for 3 years and will generate cash-flows of $100,000 in year 1; $175,000 in year 2; and $50,000 in year 3, respectively. Carolina's required rate of return is 1..
Business environment in global context : 1. What factors are likely to contribute towards a relative decline in US world influence in the coming years? 2. To what extent do you think this decline is inevitable?
Facilities for undergraduate students : We should write Main hypothesis related to subhypothesis which are: 1) The student's Union provides more facilities for undergraduate students more than postgraduate students.
Show each transaction in the accounting equation : Show each transaction in the accounting equation. Prepare the contributed capital portion of the shareholders' equity section at June 30, 2007.
Based on your analysis should the project be accepted : Find the net present value, internal rate of return, payback period, discounted payback period, and profitability index of the proposed project. Based on your analysis should the project be accepted?

Reviews

Write a Review

 

Financial Management Questions & Answers

  How much will your collection be worth when you retire

Your coin collection contains 45 1954 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2057, assuming they appreciate at a 8 percent annual rate?

  How would you include the dividends you earned

If you are buying and selling stock, how would you include the dividends you earned? For eample if I want to sell my stock after two weeks and my dividend is $1.50 & I just sold my stock and made $50.00. Would I add $1.50 to my earnings or do I have ..

  About the purchased home

You have just purchased a home and taken out a $490,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 4.88%. How much will you pay in interest and how much will you pay in principal during the first year? How much will..

  Determine amounts of non operating assets-financial claims

Determine the amounts of non operating assets and financial claims related to the retiree health and life benefits plans and pension plans that would be included in a valuation of GE.

  New stocks required rate of return

A stock has a required return of 15%; the risk-free rate is 4%; and the market risk premium is 4%. New stock's required rate of return will be  %. Round your answer to two decimal places.

  Concern about the financial viability of the current insurer

Duration of the need, Concern about the financial viability of the current insurer, Capacity of the policyholder to fund premiums, Cost of the premium compared to alternatives

  Projects based on payback analysis

You are considering two mutually exclusive projects. Project A has cash flows of -$72,000, $21,400, $22,900, and $56,300 for years 0 to 3, respectively. Project B has cash flows of -$81,000, $20,100, $22,200, and $74,800 for years 0 to 3, respectivel..

  What is the operating cash flow and cash flow to creditors

Weiland Co. shows the following information on its 2014 income statement: sales = $162,500; costs = $80,000; other expenses = $3,300; depreciation expense = $9,000; interest expense = $6,500; taxes = $22,295; dividends = $8,150. In addition, you're t..

  Voluntary settlements for firm with outstanding debt

Voluntary settlements for a firm with outstanding debt of $125,000, classify each of the following voluntary settlements as an extension, a composition, or a combination of the two. Paying a c group of creditors in full in four periodic installments ..

  What can a bank do to increase its core deposits

What can a bank do to increase its core deposits? What are the costs and benefits of such efforts? Generally, how might management estimate the relative interest elasticity of various deposit liabilities of a bank?

  Calculate the operating and cash cycles

Consider the following financial statement information for the Ayala Corporation: Item Beginning Ending Inventory $ 11,400 $ 12,400 Accounts receivable 6,400 6,700 Accounts payable 8,600 9,000 Credit sales $ 94,000 Cost of goods sold 74,000 Calculate..

  What is gonzales corporations expected current share price

Gonzales Corporation generated free cash flow of $81million this year. For the next two years, the company's free cash flow is expected to grow at a rate of 9%. After that time, the company's free cash flow is expected to level off to the industry lo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd