Investment project provides cash inflows

Assignment Help Financial Management
Reference no: EM131329749

An investment project provides cash inflows of $1,250 per year for eight years. (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

What is the project payback period if the initial cost is $4,050?

Payback period: _______years

What is the project payback period if the initial cost is $5,100?

Payback period             years

What is the project payback period if the initial cost is $11,000?

Payback period             years

Reference no: EM131329749

Questions Cloud

Political history of the united states : Discuss the faults of federalism over the political history of the United States. Please include at least two examples. Your response should be at least 200 words in length.
Does heat or work flow across the boundary : The system consists solely of the liquid. Does heat or work flow across the boundary between the system and surroundings? Justify your answer.
What is the equivalent annual annuity of project : Project S has cash flows of (600), 400, 300. Project L has cash flows of (900), 300, 400, 500. Both projects have a required return of 8%. The projects are mutually exclusive and repeatable. What is the Equivalent Annual Annuity of Project S? What is..
Income elasticity of demand for good a : Assume that the income of consumers changes by 10%, and as a result the quantity demanded for Good A changes by 8%. What is the income elasticity of demand for Good A? What does this mean for your company?
Investment project provides cash inflows : An investment project provides cash inflows of $1,250 per year for eight years. What is the project payback period if the initial cost is $4,050? What is the project payback period if the initial cost is $5,100?
Outline the response to increase in demand : In a competitive industry each firm has total costs C = q2 + 25. Demand increases from D0 =150 - 5p to D1 = 300 - 5p. Provide a pair of fully labeled diagrams showing "The Firm" and"The Industry" to outline the response to this increase in demand.
Does that mean that because of its larger mass : Does that mean that because of its larger mass, Argon exerts a higher pressure on the container walls than He at the same molar density, volume, and temperature? Explain your answer.
Absence of a price floor : In the absence of a price floor, the maximum price that a few of the consumers are willing to pay up to $100 per barrel of gosum berries. The market equilibrium (E) price is $50 per barrel. How much consumer surplus is created, when there is no pr..
Find an equilibrium of the given situation : Find an equilibrium of this situation in which both grocers randomize between staying and quitting every month until at least one grocer quits.

Reviews

Write a Review

Financial Management Questions & Answers

  What average annual rate of return should an investor expect

Gilligan Co.'s bonds currently sell for $1,150. They have a 6.75% annual coupon rate and a 15-year maturity, and are callable in 6 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bonds, an..

  Straight-line depreciation-what is average accounting return

A project has an initial cost of $54,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $2,000, $3,900, $4,500, and $4,500 a year fo..

  Calculate the loans annual financing cost

Calculate the loan's annual financing cost. Calculate the loan's annual percentage rate. What is the reason for the difference in your answers to parts a and b?

  Weighted average cost of capital for use capital budgeting

Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?

  What is the required rate of return on this stock

Proxicam, Inc., is expected to grow at a constant rate of 9.25 percent. If the company’s next dividend, which will be paid in a year, is $1.45 and its current stock price is $22.35, what is the required rate of return on this stock?

  Presented below are the captions of chan company''s balance

Presented below are the captions of Chan Company's balance sheet. (a) Current assets. (b) Investments. (c)Property,plant, and equipment. (d) Intangible assets. (e) Other assets.

  What is the current price of the bond

Amortizing Bond Assume that a bond makes 30 equal annual payments of $1,000 starting one year from today. (This security is sometimes referred to as an amortizing bond.) If the discount rate is 3.5% per annum, what is the current price of the bond?

  Determine retirement payments to its employees

Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $3,100 per year of service. Calculate your annual benefit payments for 24, 27, and 29 years of service.

  What is the stocks expected price four years from today

A stock is expected to pay a dividend of $4.00 at the end of the year and it should continue to grow at a constant rate of 6% a year. If its required return is 12%, what is the stock’s expected price 4 years from today?

  Corporate executive wishes to make his financial numbers

A corporate executive wishes to “make” his financial numbers in order to get his bonus, receive his stock options and keep his job. To do this he reduces various accounting “estimates” such as bad debt expense. This makes the net income go up and he ..

  Coupon rate is equal to the general interest rates in market

If the bond’s coupon rate is equal to the general interest rates in the market, the Bond will sell at a A. Premium B. Discount C. Neither A nor B. Projected sales growth assumes A. Adequate asset base B. Decrease in property, plant and equipment C. D..

  Calculate the percent earned on operating property

Calculate the Operating ratio, Funded debt to operating property, Percent earned on operating property and Operating revenue to operating property for 2011, 2010, and 2009.

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