Determine the payback period for this project

Assignment Help Financial Management
Reference no: EM131552619

Payback period Jordan Enterprises is considering a capital expenditure that requires an initial investment of $61,000 and returns after-tax cash inflows of $10, 667 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.

a. Determine the payback period for this project. b. Should the company accept the project?

Reference no: EM131552619

Questions Cloud

What will be electrons radius of curvature in magnetic field : Physics students often measure the ratio of the charge e of an electron to its mass m. In one experiment to measure e/m, electrons are boiled.
Compare at least three print technologies : Compare at least three print technologies. Criteria to address includes, but is not limited to. A 5- to 7-slide presentation with detailed speaker notes.
How much does your option cost per bushel of corn : How much does your option cost per bushel of corn? What is your net profit or loss if corn futures prices are $5.20 per bushel at expiration?
Write a research paper great recession and imperfect markets : Write a 2500 words research paper, great recession and imperfect markets includes data and graphs.
Determine the payback period for this project : Determine the payback period for this project. Should the company accept the project?
Alternative with the largest expected net present worth : The coopration will choose the alternative with the largest expected net present worth (NPW). What is the expected NPW of the best alternative?"
Discuss on key aspects of environmental issues and problems : Definition and discuss on key aspects of Environmental issues and problems such as Climate Change and others.
What is the magnitude of the deflecting electric field e : An electric potential of 1000V is placed across two plates separated by 20mm, as shown in Fig. A beam of particles each with charge q and mass m travels.
Make three decisions concerning the medication : Examine Case Study: Pakistani Woman with Delusional Thought Processes.You will be asked to make three decisions concerning the medication.

Reviews

Write a Review

Financial Management Questions & Answers

  What ACH and EFT are and how they are being used today

With the increasing use of ACH and EFT (and Bank Wires), has the game changed for how companies can manage their cash. Who can tell me what ACH and EFT are and how they are being used today.

  An investment offers total return-inflation rate

An investment offers a total return of 13 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 8.5 percent. What does Bill believe the inflation rate will be over the next year?

  What is the relative benefit of buying as opposed to leasing

You are considering whether to buy or lease a car. what is the relative benefit of buying as opposed to leasing?

  What would the risk-free rate have to be for the two stocks

Stock Y has a beta of 1.5 and an expected return of 17.6 percent. Stock Z has a beta of 1.0 and an expected return of 12.3 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?

  Required return-preferred stock outstanding

Ayden, Inc., has an issue of preferred stock outstanding that pays a dividend of $6.75 every year, in perpetuity. This issue currently sells for $93 per share. What is the required return?

  Use of time communicate status-personality characteristics

What is the difference between denotative and connotative meanings? What words can you think of that have different denotative and connotative meanings? Have you ever been confused about whether it would be appropriate to interpret a word based on it..

  Explain how you would use them to make a decision

Choose two decision-making tools you learned in our materials this week and explain how you would use them to make a decision with an actual problem you have faced in your professional life.

  Determine the annual percentage rate of increase for budget

The annual budget for a University Department has been increasing by the same percentage each year and is expected to continue to increase at this percentage rate annually for the foreseeable future. This year the budget is $1.65 million and two year..

  What is current yield or cost of the preferred stock

What is the current yield or cost of the preferred stock?

  Calculate the mean and standard deviation for your scores

If you have access to SPSS or a similar data analysis program, calculate the mean and standard deviation for your scores.

  What is the minimum conversion ration

A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $28.20. What is the minimum conversion ration that would make a bondholder prefer to convert rather than accept the call price?

  What are the mean and variance of the portfolio value

Financial Managers, Inc., buys and sells a large number of stocks routinely for the various accounts that it manages. Portfolio manager Sarah Bloom has asked for your assistance in the analysis of the Burde Fund. What are the mean and variance of the..

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