What is the projects discounted payback period

Assignment Help Financial Management
Reference no: EM13721927

A project has an initial cost of $925, expected net cash inflows of $690.30 per year for 4 years, and a cost of capital of 11.10%. What is the project's discounted payback period?

Please Show Work

Reference no: EM13721927

Questions Cloud

Balance sheet is principally current market value : The valuation basis of the Balance Sheet is principally current market value.___ ‘Retained Earnings’ reflects cumulative net income kept in the business.___ Current Liabilities are obligations due to be paid within a year of the Balance Sheet date.__..
Two pieces of equipment-truck and overhead pulley system : If considering adding two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $17,400, and that for the pulley system is $20,200. The firm's cost of..
Determine the ethics of the term paper service : Use the ethical decision making model process to determine the ethics of the term paper service. Provide 3-5 APA style references both inline and at the end of the paper to support your analysis. Note: This is your opportunity to demonstrate your k..
Determine the maximum compressive load it could support : The connecting link is machined from 1020 steel as-rolled. Determine the maximum compressive load it could support assuming a factor of safety = 3
What is the projects discounted payback period : A project has an initial cost of $925, expected net cash inflows of $690.30 per year for 4 years, and a cost of capital of 11.10%. What is the project's discounted payback period?
What is the projects payback period : A project has an initial cost of $41,600.00, expected net cash inflows of $9,000.00 per year for 12 years, and a cost of capital of 12.50%. What is the project's payback period?
Collaboration in a business environment is a best practice : Collaboration in a business environment is a best practice that leverages the collective knowledge of the team assembled. Peer evaluation and support, provided in the spirit of continuous improvement and organizational success, result in higher qu..
What are the yields to maturity for bond : Consider three risk free Eurobonds (which pay coupons annually). Their times to maturity, coupon rates and current market prices (based on a face value of$100) are as follows: Bond A 1 yr 9% $101.25; Bond B 2 yrs 8% 99.75; Bond C 3 yrs 7% $96.00.
Bonds discount rate is lowered : Which one of the following will occur if a bond's discount rate is lowered?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Exchange rates and market rates

What do you call a check that a bank writes on its own account made payable to a third party on your behalf? The FDIC and NCUA insure non-retirement accounts in banks, savings & and loans, and credit unions for up to: Assume the following exchange ra..

  What is the implied coupon

If the promised payment on the bond is the same as the issue price of $100, what is the implied coupon if effective interest rates are 3.0% and the bond has a 1-year maturity?

  Why is the coefficient of variation a better risk measure to

Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects?

  Firm a has 10000 in assets entirely financed with equity

nbsp1. firm a has 10000 in assets entirely financed with equity. firm b also has 10000 in assets but these assets are

  Assuming market efficiency

Assuming market efficiency: What is the efficient market hypothesis? If XYZ Corporation’s stock is expected to fall next year to $45 and the closing price was $60 yesterday, what would be the price today if the annual equilibrium return is 10%?

  What are the standard deviations of the returns for stocks

What are the expected returns for Stocks X and Y, E(rX) and E(rY)? What are the standard deviations of the returns for Stocks X and Y, ?X and ?Y? Suppose you have $1000 to invest, and decide to invest $700 in Stock X and $300 in Stock Y. What are the..

  Investor has created a hedge-using appropriate terminology

An investor has been following MSFT since its inception. He was an employee of the company for many years but does not own stocks or options in any company. He is concerned that the value of MSFT will unacceptably decline below $30. He therefore buys..

  Putable bonds when interest rate volatility rises

Explain what will happen to an investment company taking positions on putable bonds when interest rate volatility rises? Explain what will happen to an investment company that takes positions in covered calls on stocks when risk aversion levels rise ..

  The effective before tax cost of capital

To help fund an addition to your house, you borrow $25,000 from your bank. The conditions of your loan state that the interest rate is 9 percent compounded monthly. The Effective before tax cost of capital?

  Decision affect the other elements of working capital

What factors may lead an organisation to change the level of inventories that it holds? How could such a decision affect the other elements of working capital?

  Piping hot food services is evaluating capital budgeting

Piping Hot Food Services (PHFS) is evaluating a capital budgeting project that costs $75,000. The project is expected to generate after-tax cash flows equal to $26,000 per year for four years. PHFS's required rate return is 14 percent. Compute the pr..

  What would have been her return in yen

Benjamin Pinkerton from New York invested in a U.S. two-year zero-coupon bond at the start of the period and sold it after one year. What was his return?

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