Question regarding the project payback

Assignment Help Finance Basics
Reference no: EM131100945

Project K costs $75,000, its expected cash inflows are $11,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

Reference no: EM131100945

Questions Cloud

A businessman trying to reach phoenix and mistakenly : AT&T was running commercials in 1990 aimed at luring back customers who had switched to one of the other long-distance phone service providers. One such commercial shows a businessman trying to reach Phoenix and mistakenly getting Fiji, where a ha..
Calculate the firm''s market value capital structure : The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 10 percent, the same as the rate on new bank loans. The long-term debt consists of 30,000 bonds, each of which has a par vale of $1,000, carries..
Grow at a constant rate : Harrison Clothiers' stock currently sells for $17 a share. It just paid a dividend of $3.5 a share ( that is, D - 3.5). The dividend is expected to grow at a constant rate of 8% a year.
Relationship between inflation and interest rates : What is the relationship between inflation and interest rates? How does this relationship affect asset prices? How does the unemployment rate affect interest rates? How do changes in interest rates affect the balance of payments?
Question regarding the project payback : Project K costs $75,000, its expected cash inflows are $11,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
How much of the new investment must be financed : To maintain the present capital structure, how much of the new investment must be financed by common equity?Assume that there is sufficient cash flow such that Tysseland can maintain its target capital structure without issuing additional shares of e..
Preferred stock valuation : Fee Founders has perpetual preferred stock outstanding that sells for $34.00 a share and pays a dividend of $4.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.
What will be next year''s eps : a. If investors require a 9 percent return, what rate of growth must be expected for Sidman? b. If Sidman reinvests earnings in projects with average returns equal to the stock's expected rate of return, what will be next year's EPS?
Question regarding the bond current market price : Callaghan Motors' bonds have 7 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 9%, and the yield to maturity is 7%. What is the bond's current market price? Round your answer to the..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the total ordering cost

A. What is the EOQ? B. How many orders will be placed per year? C. What is the total carrying cost? D. What is the total ordering cost?

  What is the implied annual rate of interest

1. If you can double your money in 16 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentage..

  What is its coefficient variation

A stock has an unexpected return of 0.13 and a variance of 0.23. What is its coefficient variation?

  Scientists believe about the origin of life on earth

There is a summary statement concerning what scientists believe about the origin of life on earth. Summarize the three (3) current competing theories of the origin of life on Earth: it arrived from an extraterrestrial source, it originated as a he..

  You are considering an investment scenario where stocks

you are considering an investment scenario where stocks will return -5 in a recession 15 in a normal economy and 25 in

  What role do financial markets play in our economy

What role do financial markets play in our economy? What are primary and secondary markets? What relationship exists between financial institutions and financial markets?

  Assignment on expected value and consumer choices

Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making.

  Explain what are two critical operating assumptions

What are operating profits and invested cpital expected to be next year? What are two critical operating assumptions (identify one for profits, and one for capital) embedded in this forecast method?

  Statements about trade blocs is correct

1. Which one of the following statements about trade blocs is correct?

  Calculate the npv of each choice

The Bell Mountain's opportunity cost of capital is 11.8 percent, and the costs and values of investments made at different times in the future

  While jo is pleased with the current success of the nursery

jo brownrsquos nursery operation has grown from a small herb plot into a thriving nursery business. there are 10

  Irrnpv consider this project with an internal rate of

irrnpv. consider this project with an internal rate of return of 13.1 percent. should you accept or reject the project

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