User Account

All Pages

Accepted with a discount rate

Assignment Help Finance Basics
Reference no: EM131317426

Discounted payback: Timeline Manufacturing Co. management is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $1,912,855, and project B's cost is $1,875,000. Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent?

Year

Project A

Project B

1

$ 186,212

$516,212

2

393,562

613,277

3

497,594

731,199

4

485,552

Reference no: EM131317426

Questions Cloud

The total initial investment or cash outflow at time zero : Your company plans to purchase a machine worth P250,000 which will be depreciated over five years using straightline method. There will be no salvage value. An installation cost of P50,000 is required to make the new machine operational. How much is ..
Establish emergency operation center with multi-jurisdiction : Establish an Emergency Operations Center with a multi-jurisdictional, multi-agency, multi-level staff that combines the different needs of the community and infrastructure with coordinated command and control.
What is the maximum amount that beta corporation can pay : What is the maximum amount that Beta Corporation can pay in cash dividends, without impairing its legal capital.
Percent of euro-area gdp : Why did the sovereign debt problem of Greece- a country that accounts for less than 2 percent of euro-area GDP - threaten the banking system throughout the euro area?
Accepted with a discount rate : Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent?
Reduce a complete directed graph of n nodes : Show that when you apply node splitting to a nonreducible ow graph, and then perform T1-T2 reduction on the resulting split graph, you wind up with strictly fewer nodes than you started with.
Make improvements in its working capital management : The company wants to make improvements in its working capital management. At present, the firm has credit sales of P1,200,000, the collection period is 60 days, and the cost is 80% of the sales price. Compute the (a) Average Accounts Receivale and (b..
Describe your final three to five observations about success : Describe your final three to five observations about the success of the agency, highlighting the value of the agency to U.S. citizens, its success at meeting its goals, and areas where it can improve.
Focusing on current ratio-quick ratio and cash ratio : Given the following comparative financial data, conduct a trend analysis focusing on current ratio, quick ratio and cash ratio.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the expected return of portfolio

Assume you have a portfolio that consists of stock A and B. The total value of your portfolio is $150,000. Out of the total rates, $97,500 was invested in stock B and the rest in stock A.

  Problem regarding the cost of capital

A division of a company has invested capital of $850,000. If residual income is $5,700 and net operating profit after taxes is $70,000, how much is the cost of capital?

  Calculate the return on assets

What are the Sales (also called Net Sales, Net Revenue, or Operating Revenue) for the most recent three years? This is normally the largest number. Calculate the return on assets

  How much interest is paid over the life of the loan

How much interest do the borrowers in Problem 11 pay during the tenth year of the loan? In Problem 11, determine the monthly payment for a thirty-year real estate loan with an annual percentage rate of 8.5% and an initial principal of $200,000. How m..

  Tabulate the payment for entering into the transaction the

we will compare the relative performance of shares futures and options during the week of april 7-11. implement the

  Security structures and enterprise values

Create a scenario of a business that would benefit from using the enterprise method of evaluation. Provide a rationale with your response.

  What is the bonds current market price

callaghan Motors' bonds have 10 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 8%, and the yield to maturityis 9%. What is the bond's current market price?

  Nixon communications is trying to estimate the first-year

nixon communications is trying to estimate the first-year operating cash flow at t 1 for a proposed project. the

  Calculate thelma and louie net income for the year

The company paid dividends of $33 million to the preferred stockholders and $73 million to common stockholders. Calculate Thelma and Louie's net income for the year.

  The it department of your company has begun to appreciate

the it department of your company has begun to appreciate that its projects do not exist in a business vacuum. that is

  Operations section of a business plan

1. What is the Operations section of a business plan and what's it purpose? 2. What needs to happen before you have a product designed, tested, manufactured, and ready to sell to customers?

  What is the 6-month interest rate

Asian Motors Inc. plans to issue $3,000,000 of commercial paper with a 6-month maturity at 98% of par value. What is the 6-month interest rate.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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