Maximum allowable payback

Assignment Help Finance Basics
Reference no: EM131209384

Compute the payback period statistic for the following project and recommend whether the firm should accept or reject the project with the cash flow shown in the chart if the maximum allowable payback is 4 years

Time                     0                   1                2              3             4            5

Cash Flow        -$1,000         $350         $480        $520       $300     $100

Reference no: EM131209384

Questions Cloud

Discuss the significance of orwells novel animal farm : Discuss the significance of Orwells novel ANIMAL FARM - Describe the fiasco of Charlie's funeral? What does this further tell us about the Stasi?
Apply fraud triangle model to discuss the world-com fraud : OMBA 6315 Ethics Essay Assignment. Apply the fraud triangle model to discuss the World-Com Fraud and briefly discuss how Gebler's approach to "Creating An Ethical Culture" could have made a difference for Betty Vinson. You are limited to 400 words..
Tie ratio and its return on invested : It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $0.81 million, its average tax rate is 30%, and its profit margin is 6%. What are its TIE ratio and its return on invested capital (ROIC)?
How much money do you have in the account : You just discovered that your spouse knew about the account the whole time and has been withdrawing $45 each month for the last 10 years. How much money do you have in the account?
Maximum allowable payback : Compute the payback period statistic for the following project and recommend whether the firm should accept or reject the project with the cash flow shown in the chart if the maximum allowable payback is 4 years
What would happen to interest rates on municipal securities : What would happen to interest rates on municipal securities, given each of the following scenarios?-  The government increases marginal tax rates.
Journalize the entries to record the operations : Journalize the entries to record the operations, identifying each entry by letter. For a compound transaction, if an amount box does not require an entry, leave it blank.
What are the trades-offs involved in setting grant level : What are the advantages and disadvantages of categorical grants relative to negative income tax?
What is the expected short term interest rate : If the current short- term rate is 5 percent and the current long- term rate is 4 percent, what is the expected short- term interest rate?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Hot wings inc has an odd dividend policy the company has

hot wings inc. has an odd dividend policy. the company has just paid a dividend of 9.00 per share and has announced

  What is the project equivalent annual cost

If the required return is 19 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)

  What should the management do when evaluating the project

what should the management do when evaluating this project. United Fried Co. is considering investing in a project in which the risk is greater than the firm's current risk based on any method for assessing risk

  Under which of the three options will the owner pay

Under which of the three options will the owner pay the least interest and why

  What is the depreciation tax shield for this project

Assume a tax rate of 35% and a discount rate of 15%. What is the depreciation tax shield for this project in year 3?

  How does a stock’s expected price volatility affect

How does a stock’s expected price volatility affect the value of a call option on it?

  What effect would the exchange rate have on the returns

The current portfolio of investments that Ann has her money set up in within the U.S. yields a return of 6%. Both yields are annual. The 1-year futures rate of exchange for USD/PD is 1.25USD/1PD.-Should Ann invest her company's money in the U.S. f..

  Score predictive of college gpa

Is the TOEFL® score predictive of college GPA? Choose the correct test to analyze this question, set up the SPSS file, and run the analysis. Follow the directions under the table below.

  You are considering implementing a lockbox system for your

you are considering implementing a lockbox system for your firm. the system is expected to reduce the average

  Present value of winning amount

The prize will be awarded on your 80th birthday, 60 years from now. What is the present value of your winning amount if the appropriate discount rate is 7 percent?

  Case study the google ipo

Case Study: Google IPO, by Matthias Hild for University of Virginia, No. UV3867

  Explain taxes, leasing and the time value of money

Explain taxes, Leasing and the time value of money and explain why a financial lease represents a secured loan in which the lender entire debt service stream is taxable as ordinary income to the lessor/lender

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