What is the discounted payback period

Assignment Help Financial Management
Reference no: EM13987741

A capital project costs $300M and has expected cash flows of $75M for the 1st three years and $50M in each of the project’s last three years. If the discount rate is 8%, what is the discounted payback period?

Reference no: EM13987741

Questions Cloud

Critical drivers that influence performance attainment : Which of the following is not one of the four critical questions that must be answered for dashboard reporting? What is the firm's strategic vision? what is most important to the firms success? what are critical drivers that influence performance att..
Net income and cash flow from operations : Using the following information below, prepare cash flow statement using the table below. Determine the following: net income, cash flow from operations, cash flow from investment activites cash flow from financing activities, increase in cash and en..
Securities-which portfolio has the lowest risk : Suppose there are three securities (A, B, and C) to choose from to create your portfolio. Next year the economy will be in an expansion, normal, or recession state with probabilities 0.40, 0.33, and 0.27, respectively. where the numbers inside parent..
Element of budgeted financial requirements-budgeted expenses : Which of the following is an element of budgeted financial requirements that is not included in budgeted expenses?
What is the discounted payback period : A capital project costs $300M and has expected cash flows of $75M for the 1st three years and $50M in each of the project’s last three years. If the discount rate is 8%, what is the discounted payback period?
What is the yield on a seven-year treasury note : The real risk-free rate is 2.65%. Inflation is expected to be 3.2% this year, 4.1% next year, and then 2.5% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Tr..
Founder of the vanguard group of mutual funds : Bola's friend Marshall heard a speech by John C. (Jack) Bogle, founder of The Vanguard Group of Mutual Funds, one of the lowest cost and most successful group of funds. How much will Bola have if Jack Bogle is correct and the earnings will be 6% per ..
What will be the net present value : Christina hopes to open a Deli in 2015. The initial investment will be $85,000. She expects that that the Deli will generate the positive cash flow as indicated below. If she can borrow money at 7% per year, what will be the Net Present Value? Use 7%..
Deemed reasonable in particular circumstances : Should the UCC be more specific in defining what will be deemed reasonable in particular circumstances so that the courts do not have to decide the issue? Why or Why not?

Reviews

Write a Review

Financial Management Questions & Answers

  What was nancys net profit on the option

Nancy Marchand purchased a put option on British pounds for $.04 per unit. The strike price was $1.80 and the spot rate at the time the pound option was exercised was $1.59. Assume there are 31,250 units in a British pound option. What was Nancy’s ne..

  What is the company pretax cost of debt

Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 110 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. ..

  Price of land has been increasing

Bob bought some land costing $15,440. Today, that same land is valued at $44,917. How long has Bob owned this land if the price of land has been increasing at 6 percent per year?

  What are the border values between acceptance and rejection

At a 10% significance level (90% confidence level), what is the critical value in this test? Do we reject the null hypothesis?

  Market price of share of common stock at time of issuance

The market price of a share of common stock at the time of issuance was $19.50, while the market price of a preferred share of stock at the time of issuance was $32. The company paid $12.50 for its treasury stock. Fill in the missing stockholders' eq..

  Management accounting advice to not-for-profit firms

Cray-Z Consultants provides management accounting advice to not-for-profit firms. It employs three levels of consultants, based on experience and education: partner, senior, and associate. When Cray-Z considers bidding on jobs, it estimates the costs..

  Identify and analyze the effect of the bond redemption

Bonds payable are dated January 1, 2014, and are issued on that date. The face value of the bonds is $150,000, and the face rate of interest is 14%. The bonds pay interest semiannually. Calculate the gain or loss on bond redemption. Round answer to t..

  What is the bonds coupon rate

A 20-year Treasury bond is issued with face value of $1,000, paying interest of $40 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (Round your answer to 1 decimal place.)

  What is the standard deviation-geometric return

A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent over the last six years. What is the arithmetic return? What is the geometric return for this stock? What is the standard deviation? (use the arithme..

  What is the expected spot rate of the euro in one year

Does IRP hold? According to PPP, what is the expected spot rate of the euro in one year? According to the IFE, what is the expected spot rate of the euro in one year?

  The tax liability resulting from this sale

A company sold a piece of equipment during the current tax year for $78,600. The accounting records show that its cost basis, B, is $190,000 and the accumulated depreciation is $139,200. Assume that the effective income tax rate is 40%. The tax liabi..

  Under-investment problems refers to the problem

Under-investment problems refers to the problem that equity holders prefer not to invest in positive-NPV projects in highly levered firms because

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