The firm uses payback period criteria of not accepting

Assignment Help Financial Management
Reference no: EM131053076

AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $ 430,386, $512,178, $564,755, $764,997, $816,500 and $825,375 over the next six years. What is the payback period?

Reference no: EM131053076

Questions Cloud

Why does john cage consider : Why does John Cage consider 4'33" music when the performer does not play for the entire time span?
About the future value of a dollar : Which of the following statements about the future value of a dollar is true?
Executives looking for sales information : Jim Honerkamp, CIO of Hillman Group, is proud of his new business intelligence (BI) system. Why not? It's much better than what came before. In the bad old days, executives looking for sales information, for example, had to ask one of Honerkamp's ..
Health on the net foundation throughout course : Please use Health on the Net Foundation throughout this course. This discussion provides students the opportunity to learn nutrition information from each other.
The firm uses payback period criteria of not accepting : AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $ 430,386, $512,178, $564,755, $764,997, $816,..
Write a news article based on an event : Write a news article based on an event. incident form the myth I researched. Create a properly formatted news article ( in columns) including a headline, byline, picture and at least one qoute that could be feasible be uttered by your character o..
The beta of an efficient portfolio : In a CAPM framework, prohibiting short sales: The beta of an efficient portfolio: Which of the following is not a general conclusion of studies of stock prices? The fact that superior returns can not be made by selling stocks that cut dividends is ev..
Monroe motivated sequence : It is like a business/marketing strategy that breaks down what should be done. By following this model you can persuade the audience on what your presenting by talking about doTerra Essential Oils.
Hat key element in sales approach is lacking : Grace is waiting in her office to meet Joseph, the new sales representative for Powerslam shoe company. Joseph arrives promptly and Grace notices he is well-dressed, sounds intelligent, and has a firm handshake. Joseph immediately inquires about what..

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the cost of the cash discounts to warren

Warren Motor Company sells $30 million of its products to wholesalers on terms of "net 30." Currently, the firm's average collection period is 48 days. In an effort to speed up the collection of receivables, Warren is considering offering a cash disc..

  About the net income after-tax

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $17,098,900. Depreciation and amortization was $857,400, interest expense for the year was $866,400, and selling general and administrative expenses totaled $1,481,..

  What is the highest rate the bank can pay on time deposits

Dalian State Bank Balance Sheet 12/31/10 Millions of RMB Assets Liabilities Construction Loans ¥25 Demand Deposits ¥ 35 Home Loans 75 Time Deposits 62 Equity Capital 3 Totals ¥100 ¥100 15. Construction loans pay off in 1 year and earn 6%. Home loans ..

  Estimate value of property using direct capitalization

You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $68,000. Four highly similar and competitive apartment properties within two blocks of the subject property have sold in the pas..

  What is the company pretax cost and aftertax cost of debt

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 9 percent annually. Wha..

  The firm has no long-term debt

Harvey Supplies Inc. has a current ratio of 4.56, a quick ratio of 1.95, and an inventory turnover ratio of 11.21.  Harvey's total assets are $8,407,769 million and its debt ratio is 0.47.  The firm has no long-term debt. What is Harvey's sales figur..

  What is the present value of all future earnings

Analysts predict that a company's earning will grow at 30% per year for the next five years. After, earnings growth is expected to slow down to 6% a year and continue at that rate forever. The company's earnings are $2 million. What is the present va..

  Using the assumption that sales will increase 20 in the

research a company of your choice and locate the latest financial statements published by the company.for the following

  Discuss why a bank should examine each component

What are the conceptual differences between the trend, seasonal, and cyclical components of a bank's loans and deposits? Discuss why a bank should examine each component rather than simply look at total loans and deposits.

  Using net present value when evaluating projects

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping’s cost of capital is 5.76 percent. What is the NPV of a project if the initial costs are $2,478,570 and the project life is estimated as 12 years? Th..

  Valid restriction in a cooperative interest

Which of the following is not a valid restriction in a cooperative interest? Which of the following is not a remedy available to homeowners' associations for violations of CCRs and rules?

  Determined that the crossover rate for projects

Swenson’s is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent. Given this you know that:

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