Should the company consider investing in the project

Reference no: EM13279225

Jeremy Yospin Inc. has an investment project that has annual cash flows of $8,800, $ 9,000, $10,000, $8,700 and $9,500 in next five years, and a discount rate of 10%. a) Find out the payback period, Discounted Payback period, NPV, and profitability index if the initial cost is $28,000. Should the company consider investing in the project? b) Find out the payback period, Discounted Payback period, NPV, and profitability index if the initial cost is $35,000. Should the company consider investing in the project?

Reference no: EM13279225

Questions Cloud

Explain benzene and toluene has a total vapor pressure : A solution of 75.0 g of benzene (C6H6) and 75.0 g of toluene (C7H8) has a total vapor pressure of 80.9 mmHg at 303 K. Another solution of 100.0 g benzene and 50.0 g toluene has a total vapor pressure of 93.9 mmHg at this temperature.

How many units should delsing producue : Production requirements for (L02) Delsing Plumbing Company has beginning inventory of 14,000 units, will sell 50,000 units for the month, and desires to reduce ending inventory to 40 percent of beginning inventory. How many units should Delsing pr..

What is the beams change in length : A steel beam 10m long is installed in a structure at 15?C, What is the beam's change in length when the temperature reaches 50?C

Calculate the pv of growthproject and nongrowthproject : a) Calculate the PV of GrowthProject and NonGrowthProject b) As a CEO, which project you should select, based your calculations in (a)

Should the company consider investing in the project : Discounted Payback period, NPV, and profitability index if the initial cost is $35,000. Should the company consider investing in the project?

How many samples need to save when storing an hour of speech : Typically, a speech signal that can be understood over a telephone shows frequencies from about 100 Hz to about 5 KHz. What would be the sampling frequency fs (samples/sec) that would be used to sample speech without aliasing.

Explain the graph representing the integrated order rate law : What statement below best describes the graph representing the integrated 1st order rate law. plot of ln[a] vs t having a straight line negative slope equal to -k

What was the firm operating cash flow during 2010 : What was the firm's Cash flow from assets during 2010? d) What was the firm's Operating cash flow during 2010?

What constraints apply to the current measuring method : how could an oscilloscope be used to display current waveforms instead of voltage waveforms. what constraints apply to your current measuring method.

User Account

All Pages