Calculate the payback period for each project

Assignment Help Financial Management

Reference no: EM132070899

Consider the following projects: Cash Flows ($) Project C0 C1 C2 C3 C4 C5 A ?2,100 2,100 0 0 0 0 B ?4,200 2,100 2,100 5,100 2,100 2,100 C ?5,250 2,100 2,100 0 2,100 2,100 a. If the opportunity cost of capital is 9%, which project(s) have a positive NPV? Positive NPV project(s) Project A Project B Project C Projects A and B Projects A and C Projects B and C Projects A, B, and C No project b. Calculate the payback period for each project: (Round your answers to 2 decimal places. If a project never pays back, enter "0".) Project A 1 year(s) Project B 2 year(s) Project C 3.5 year(s) c. Which project(s) would a firm using the payback rule accept if the cutoff period were three years? Project(s) accepted d. Calculate the discounted payback for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places. If a project never pays back, enter "0".) Project A 0 year(s) Project B year(s) Project C year(s)

Reference no: EM132070899

Questions Cloud

Review problem related to super jackpot : You have recently won the super jackpot in the Washington State Lottery. On reading the fine print, you discover that you have the following two options.

Current return on equity : Company Q’s current return on equity (ROE) is 13%. What are Q’s EPS and dividends in years 1, 2, 3, 4, and 5? What is Q’s stock worth per share?

Find epicenter of an earthquake and calculate its magnitude : In this assignment, you will learn to find the epicenter of an earthquake and calculate its magnitude on the Richter scale

Develop our knowledge of language acquisition : Many resources are available to help us continue to develop our knowledge of language acquisition.

Calculate the payback period for each project : Calculate the payback period for each project:

Calculate the present value of the savings : Calculate the equivalent annual cost of a new jet. Calculate the present value of the savings.

Which salary options would you prefer : You have recently accepted a one-year employment term by a firm. The firm has given you the option of receiving your salary as a lump sum value of $30,000.

Calculate the equivalent annual cash flow from each machine : Calculate the equivalent annual cash flow from each machine. Calculate the NPV of each machine.

What is a good schedule : How many regular employees are required and what is a good schedule?

User Account

All Pages