Rank projects using payback period which looks best and why

Reference no: EM13476483

A firm is considering the following three investment projects. The firm doesn't want to make any investment that takes more than three years to recover their initial investment.

Year A B C

0 $(950) $(9,000) $5,500)

1 650 4,500 1,500

2 250 3,500 1,500

3 160 3,500 2,500

4 60 3,500 2,500

5 480 3,500 2,500

a) Given company's 3 year payback period, which of the projects will qualify for acceptance?

b) Rank projects using their payback period. Which looks best and why?

c) If company uses a 9.8% discount rate to analyze projects. What is company's payback period for each project.

Reference no: EM13476483

Questions Cloud

Discuss the basic concepts in designing for product : discuss the basic concepts in designing for product excellence. how can product design effect manufacturability and

Does chekhovs in exile generate in you a feeling of sorrow : does chekhovs in exile generate in you a feeling of sorrow for the human condition or anger at a social situation?

Find terminal cash flow in year 10that is annual after tax : company is considering the purchase of a new production machine which costs 400000. the purchase will result in an

Wright refers to the jim crow laws that were in effect in : wright refers to the jim crow laws that were in effect in the south from 1877 until the civil rights movement of the

Rank projects using payback period which looks best and why : a firm is considering the following three investment projects. the firm doesnt want to make any investment that takes

Love ambition greed religious faith-these are some of the : love ambition greed religious faith-these are some of the human emotions that motivate characters and help explain

Have you ever lost something that was really important to : the works weve read so far in unit one have been both difficult to understand and hard to relate to. we dont go on sea

Write the symbol and consider how it relates to that : write the symbol and consider how it relates to that storys particular situation discuss why it is an important symbol

How many bonds will they have to issue to raise needed : xyz corp needs to raise 527000. it has decided to issue a 1000 par value bond with an annual coupon rate of 10.7 with

User Account

All Pages