Calculate the payback period and discounted payback period

Assignment Help Financial Management
Reference no: EM13921412

Calculate the payback period and discounted payback period for following After Tax Cash Flow, assuming minimum discount rate of 14%. Please show your and include all the required equations.

Year 0 1 2 3 4 5

ATCF -1000 -1500 800 1000 1000 1200

Reference no: EM13921412

Questions Cloud

Numbers and measurements the language of business : Numbers and measurements are the language of business.. Organizations look at results, expenses, quality levels, efficiencies, time, costs, etc. What measures does your department keep track of ?
Describe different types of blood or blood parts donation : A drop of blood contains 250 million cells. Describe the composition of a drop of blood. Describe the different types of blood or blood parts donation
The dispersion or the probability patterns : Managers and professionals often pay more attention to the levels of their measures (means, sums, etc.) than to the variation in the data (the dispersion or the probability patterns/distributions that describe the data).
Critical thinking in the workplace : The video clip "Thinking on the Job" in the Webtext this week illustrates the importance of critical thinking, especially in work contexts. Define the concept of critical thinking in your own words. Discuss a time in either your work or personal l..
Calculate the payback period and discounted payback period : Calculate the payback period and discounted payback period for following After Tax Cash Flow, assuming minimum discount rate of 14%. Please show your and include all the required equations.
Share for stock-what is the dividend yield : Becky Martinez paid $65 a share for stock in GBX Corporation. The stock has a current market value of $48 a share and pays $1.60 a year in dividends. What is the dividend yield?
Discuss costs and benefits of decentralized decision making : Discuss the costs and benefits of decentralized decision making relative to centralized decision making. Do you expect Mark to succeed in this endeavor? Why or why not? Explain your reasoning.
Identify informed opinions on issues and questions : Identify informed opinions on issues and questions involving the U.S. government, national political processes, policy making, and the notion of democracy. Employ terminology used to study political science and American government.
Compute the amount of the aftertax income : The treasurer of Kelly Bottling Company (a corporation) currently has $280,000 invested in preferred stock yielding 8 percent. He appreciates the tax advantages of preferred stock and is considering buying $280,000 more with borrowed funds. Compute t..

Reviews

Write a Review

Financial Management Questions & Answers

  Issue of type of stock would affect the stockholders equity

The Shepersky Corporation was authorized to issue 2,000,000 shares of $0.01 par value common stock and 200,000 shares of $50 par value, 10 percent preferred stock. To date, Shepersky has issued 600,000 shares of common stock and no preferred stock.  ..

  Corporate federal income tax rates

The payback method fails to consider. Why is our reserve banking system an independent federal agency? Why do many people believe we should not have a independent reserve system? Corporate federal income tax rates. Preferred stock and bonds are simil..

  Required to finance replacement of fully depreciated

Based upon the following information, how much debt financing (as of %) would be required to finance the replacement of fully depreciated Property, Land &Equipment (P.P. &E)?

  What is the effective rate on the bank loan

Neveready Flashlights Inc. needs $340,000 to take a cash discount of 3/17, net 72. A banker will loan the money for 55 days at an interest cost of $10,400. What is the effective rate on the bank loan?  If the banker requires a 20 percent compensating..

  New equipment and dedicated production facility

At the end of the last HW assignment, Mr.Speakers had been organized into a corporation and had continued making and selling a small number of headphones. In order to expand production capabilities, Mollena has decided that Mr.Speakers needs new equi..

  What is your recommendation on this project

A project has a discount rate of 14 percent, an initial cost of $99,200, an inflow of $56,400 in year 1 and an inflow of $75,900 in year 2. Your boss requires that every project return a minimum of $1.06 for every $1 invested. Based on this informati..

  Credit card-what is the annual effective rate of interest

Your monthly statement from your bank credit card shows that the monthly rate of interest is 1.2%. What is the annual effective rate of interest you are being charged on your credit card if it's compounded annually?

  Expanding rapidly-currently needs to retain all of earning

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $0.75 coming 3 years from toda..

  New firm in rapidly growing-increasing annual dividend

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its..

  What is the present worth of this investment

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $60,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value.

  Calculating operating cash flows

(Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,100,000 and cash expenses (including both fixed and variable costs) of $600,000, while increasing depreciation by $180,000 per year. In addition, the f..

  Compound interest with no annual periods

Compound interest with no annual periods- Calculate the future sum of $3,000, given that it will be held in the bank 7 years at an annual interest rate of 5 percent. Recalculate part (A) using compounding periods that are (1) semi-annual and (2) bimo..

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