Expected net cash inflows-traditional payback period

Assignment Help Financial Management
Reference no: EM13835268

A. Project S costs $2100 up front, and its expected net cash inflows are $840 per year for 8 years (with the first inflow occurring one year from today). If the WACC is 11%  the project's NPV is $_________.

B. Project A costs $3600 up front, and its expected net cash inflows are as follows: $500 in year 1, $600 in year 2, $700 in year 3, and $800 in each of years 4-10. The project's IRR is _________%.

C. Project L costs $3600, its expected cash inflows are $930 per year for 10 years, and its cost of capital is 13%. The project's (regular, i.e. "traditional") payback period in years is ______.

Reference no: EM13835268

Questions Cloud

What does scapegoating mean : What does scapegoating mean
Why we need to pay attention to numerical issues : Give five reasons why we need to pay attention to numerical issues in our engineering activities, which include design, analysis, and optimization.
What is expected percentage change in the value of the bond : If a bond has duration of 12.25 years, and interest rates are expected to decline by 1.5 percent, what is the expected percentage change in the value of the bond?
What is the price of bond-using semi annual coupon payments : You now own a 14% annual coupon bond maturing in four years and yield 16%. (Please show how you got your answers, show the calculations.) What is the price of the bond? (Using semi annual coupon payments) What si the duration of this bond?
Expected net cash inflows-traditional payback period : Project S costs $2100 up front, and its expected net cash inflows are $840 per year for 8 years (with the first inflow occurring one year from today). If the WACC is 11%  the project's NPV is $_________. Project L costs $3600, its expected cash inflo..
Explain why marketers of services want to widen : Chaingtpter  discusses the zone od tolerance.  Define the "Zone", discuss and give examples of thingsthat cause the Zone to narrow and widen.  Explain why marketers of services want to widen this zone instead of narrowing the zone.
How many workers will douglas need to add in able : How many workers will Douglas need to add in able to meet the 25% increase in demand - This new process will require that the ovens be loaded by hand, requiring additional manpower - Show the percent change in productivity for one month last year ver..
What does it mean for a problem to be well posted : What does it mean for a problem to be (i) well-posed?, (ii) ill-conditioned? Explain.
The immune system fight a pathogen : Which of the following is a rise in body temperature that is used to help the immune system fight a pathogen

Reviews

Write a Review

Financial Management Questions & Answers

  Future value-inheritance as a down payment

Future Value. You are hoping to buy a house in the future and recently recieved an inheritance of $22,000. You intend to use your inheritance as a down payment on your house. If you put your inheritance in an account that earns 7 percent interest com..

  Explain why NPV is preferred over IRR

Explain why NPV is preferred over IRR if there is a conflict between the two methods in the selection of projects

  Equity outstanding and bonds outstanding

Consider two firms A and B that are identical in all respects except capital structure. Firm A has $100 million in equity outstanding and $40 million in bonds outstanding. Firm B has $140 million in equity outstanding and $0 million in bonds outstand..

  What are annual after-tax cash flows for wheel deal project

The Wheel Deal Inc., a company that produces scooters and other wheeled non-motorized recreational equipment is considering an expansion of their product line to Europe. What are the annual after-tax cash flows for the Wheel Deal project?

  Determine the dpbp of this investment

An investment of $1,011,000 today yields positive cash flows of $200,000 each year for years 1 through 10. MARR is 12%. Determine the DPBP of this investment

  Investment-under the payback method

Under the payback method, which of the following would be concluded?

  Two production plants-identify benchmarks

El Dorado Company has two production plants. Recently, the company conducted an ABM study to determine the cost of activities involved in processing orders for parts at each of the plants. How might an operations manager use this information to manag..

  Target capital structure consists of common stock

Schalheim Sisters Inc. has always paid out all of its earnings as dividends, hence the firm has no retained earnings. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity, its target capi..

  Question 1assume a manufacturer incurs 2000000 hours of

question 1assume a manufacturer incurs 2000000 hours of direct productive labor in a year at a total direct labor cost

  Calculate the two year moving average

In 2010 & 2011 Aldi had sales of $200million. in 2012, sales increased to $275million, in 20013 sales increased to $300 million. Calculate the two year moving average & the four year moving average for 2014.

  What would the total present value of the bond be

If a group has just issued a $100,000 par value bond paying 6% interest with 8 years til maturity. Assuming the current yield on the bond is 10%, what would the total present value of the bond be? How this would be solved

  Calculate the return on assets and profit margin

Peyton's Palace has net income of $14 million on sales revenue of $170 million. Total assets were $68 million at the beginning of the year and $90 million at the end of the year. Calculate Peyton's return on assets, profit margin, and asset turnover ..

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