What is the discounted payback period

Assignment Help Finance Basics
Reference no: EM13281853

An investment project costs $15,000 and has annual cash flows of $4,300 for six years. What is the discounted payback period if the discount rate is 0%? What if the discount rate is 5%? If it is 19%?

Reference no: EM13281853

Questions Cloud

Society thought that the fingerprint was the magic key : Many thought that DNA was the ultimate answer, but most crimes don't involve DNA evidence. Remember that once upon a time, society thought that the fingerprint was the magic key, What is next?
What is the appropriate cost of common equity : Sonderson Corporation is undertaking a capital budgeting analysis. The firm's beta is 1.5. The rate on six-month T-bills is 5%, and the return on the S&P 500 index is 12%. What is the appropriate cost of common equity in determining the firm's cos..
Calculate the term of the bond : A bond with a face value of 100, 000 has coupons of 3% per annum payable semi-annually. It will be redeemed at par. It is purchased for a price of 91,825. At this price the yield to maturity is 4% per annum convertible semi-annually.
Calculate 3db frequency and unity-gain frequency of opamp : The open-loop gain of a compensated op-amp is measured as follows:5.1´103 at100 kHz and 8.3´103 at10 kHz. Calculate its 3dB frequency, its unity-gain frequency, and its dc gain.
What is the discounted payback period : An investment project costs $15,000 and has annual cash flows of $4,300 for six years. What is the discounted payback period if the discount rate is 0%? What if the discount rate is 5%? If it is 19%?
What is the market yield : A bond is selling at a premium of $300, pays a coupon of 10% and the ttm is 5 years. What is the market yield?
Determine the percentage change of the euro : Three years ago the us dollars equivalent of a foreign currency was $1.2167? today, the us dollars equivlent of a foregin currency is$1.3310. determine the percentage change of the euro between the two year dates.
What would the voltage reading be for reversed voltage : An unmarked box is found in the back corner of a laboratory. It has two wires protuding from it, an orange wire and a purple wire. A voltmeter is connected to the two wires with the + reference on thepurple wire. A voltage of -2.86V is measured in..
Find the length of longer of two sides of initial rectangle : A rectangle has an area of 28.14 cm2. When both the length and width of the rectangle are increased by 1.80 cm, Calculate the length of the longer of the two sides of the initial rectangle

Reviews

Write a Review

Finance Basics Questions & Answers

  Construct an income statement

Construct an income statement,  Construct a balance sheet,  Construct a Statement of Retained Earnings,  Construct Statement of Cash flows

  Calculate the depreciation expense

You are given the following information for Calvani Pizza Co.: sales = $51,000; costs = $21,700; addition to retained earnings = $10,250; dividends paid = $800; interest expense = $4,100; tax rate = 35 percent. Calculate the depreciation expense.

  Interest rate sensitivity in declining order

Rank the following securities according to their interest rate sensitivity in declining order

  Marriage penalty-life annuity taxation

Howard and Beatrice plan to marry either immediately before or immediately after year-end. Based on tax considerations, what marriage date would you suggest for loving couple? How much would your choice save in taxes?

  Explain valuation of perpetual bond

Explain Valuation of perpetual Bond and In what respect is a perpetual bond similar to a non-growth common stock

  What is the projects npv

Floatation cost for debt is 4% and 8% for equity. What is the project's NPV before and after adjusting for floatation cost?

  Calculate the dollar amount of each deposit

Today, your investment account has a balance of $3,000. Exactly one year before you made a onetime deposit into the account.

  Determine the equivalent discount rate

Your bank is offering you an account that will pay 18% interest in total for a two year deposit. Determine the equivalent discount rate for the following.

  Calculate the debt ratio and time interest earned

Laurel Street, president of Uvalde Manufacturing Corporation is planning a proposal to present to her board of directors regarding a planned plant expansion that will expense $10 million.

  Importance of operational risk

Explain briefly why operational risk is important. Though the cost of implementing a new operational risk management system is expensive, determine why it could also improve the efficiency.

  What is the equivalent annual cost of each light bulb

which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 10 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb?

  Evaluate the realized rate of return for investors

Evaluate the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.

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