What is project payback period

Assignment Help Financial Management
Reference no: EM131575672

An investment project provides cash inflows of $690 per year for eight years.

What is the project payback period if the initial cost is $5,700?

Reference no: EM131575672

Questions Cloud

Assess the recent trends in direct foreign investment : Assess the recent trends in direct foreign investment (DFI) abroad by U.S. firms.
Payment will go toward repayment of principal : What percentage of the 2nd monthly payment will go toward the repayment of principal?
What is amount of the cash flow to creditors : At the beginning of the year, long-term debt of a firm is $370,000 and total debt is $495,000. What is the amount of the cash flow to creditors?
Compute the current yield and capital gains yield : Compute the (a) current yield and (b) capital gains yield that the bond will generate this year.
What is project payback period : An investment project provides cash inflows of $690 per year for eight years. What is the project payback period if the initial cost is $5,700?
Compute the return firm should earn given its level of risk : Compute the return the firm should earn given its level of risk and determine whether the manager is saying the firm is undervalued or overvalued.
Allowed companies to continue to operate irresponsibly : The government provided bailout allowed companies to continue to operate irresponsibly.
Define the default risk premium : What is the default risk premium on the corporate bond? what does the market believe that 2-year securities will be yielding 4 years from now?
Use no-load or load funds and closed-end or open-end funds : You should not only talk about the fund types in which you would invest but also whether you would use no-load or load funds and closed-end or open-end funds.

Reviews

Write a Review

Financial Management Questions & Answers

  Investment return and debt management ratios

If the firm's total assets at year-end were $50.7 million, how much of their assets are financed with equity?

  What is dividend payout ratio and sustainable growth rate

High Flyer, Inc., wishes to maintain growth rate of 15.25 percent per year and debt–equity ratio of .75. What is the dividend payout ratio?

  Stock ownership can be replicated by

Stock ownership can be replicated by:

  What is the operating ratio and capacity ratio

What is the operating ratio? Capacity ratio?

  What must six-month forward rate be to prevent arbitrage

What must the six-month forward rate be to prevent arbitrage?

  Write out the security market line equation

Write out the security market line (SML) equation and explain each item.

  Opportunity cost-calculate the net present value

Calculate the net present value (NPV) for the following twenty-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14%.

  Calculate the expected rate of return for each stock

Calculate the expected rate of return for each stock separately and calculate the expected rate of return for the portfolio.

  What is current price per share

Huskie Motors just paid an annual dividend of $1.00 per share. Management has promised shareholders to increase dividends at a constant rate of 5%. If the required return is 12%, what is the current price per share.

  Find the market return for an asset with a required return

Find the required return for an asset with a beta of 0.90  when the? risk-free rate and market return are 8% and 12% respectivley. Find the ?risk-free rate for a firm with a required return of 15.000% and a beta of 1.25 when the market return is 14%...

  What is the value of one share of the stock to you today

If you require an 18 percent rate of return on Excel's stock, what is the value of one share of this stock to you today?

  Speculator seeking capital gain to purchase bonds

Under which circumstances is it best for a speculator seeking a capital gain to purchase bonds.

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