Calculate payback period, Warnock Inc. is considering a

Calculate payback period

Assignment Help Finance Basics

Reference no: EM13273722

Warnock Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC: 10.00%
Year 0 1 2 3
Cash flows -$950 $500 $400 $300
The NPV is 60.52, but what I would like to know is:
What is the project's payback? Calculate payback period (x.xx years).
Please show me the steps on how to calculate payback period. Thank you

Reference no: EM13273722

Questions Cloud

Find magnetic flux through curved side of circular cylinder : In the region of space for which x > 0, the x-component of a steady magnetic field is described by Bx = bx^2 where b is a positive constant that has dimensions of T/m^2. (a) Which of Maxwell's equations implies this cannot be the only component of ..

Explain four moles of hydrogen should react : Given that: 2 H2(g) + O2(g) ? 2 H2O(g), four moles of hydrogen should react with excess oxygen to produce 2 moles of water.

Estimate the magnitude of the external magnetic field : A horizontal wire of length 0.57 m, carrying a current of 8.0 A, is placed in a uniform external magnetic field. When the wire is horizontal, estimate the magnitude of the external magnetic field

Find the least nonnegative residue modulo : Determine whether they are congruent modulo 7, Find the least nonnegative residue modulo and construct a table for multiplication modulo 6

Calculate payback period : Warnock Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

Define what is the partition coefficient of the compound : A 20 mg sample of a compound is dissolved in 5.0 ml of water and extracted with 2.5 mL of heptane. After separation of the layers, the heptane layer is found to contain 15 mg of the compound. What is the partition coefficient of the compound, Khep..

Find the power spectral density of y and x : Suppose a random process is X(t) = A[cos(2fot + T)] where A and Fo are constants and T is a random variable that is uniformly distributed over [0, 2p]. 1. Is X(t) wide-sense stationary 2. Find power spectral density of x(t).

Compute the net present value of the investment : An investment of $15,000 is expected to return $8,000 at the end of 5 months and 10 months.

Explain how many ml of 3.00 m h2so4 are required to react : How many mL of 3.00 M H2SO4 are required to react with 4.35g of solid containing 23.2 wt% Ba(No3)2

User Account

All Pages