What is the payback period and net present value

Assignment Help Financial Management

Reference no: EM131058589

1. A 3-year project project with an initial cost of $2,704 promises the following cash flows for years 1 through 3, respectively: $1,653, $1,501, $1,495. If you require a 5.8 percent rate of return on this project, what is the net present value?

2. A project with an initial cost of $6,966 is expected to generate cash inflows of $2,986 every year for the next 10 years. What is the payback period?

Reference no: EM131058589

Questions Cloud

Calculating future values-additional contributions : Calculating Future Values [ L01 ] You have just made your first $5,000 contribution to your retirement account. Assuming you earn a return of 10 percent per year and make no additional contributions, what will your account be worth when you retire in..

Jon average power output during the lift : Only 0.50 s elapsed from the first movement of the barbell until it was overhead, and the barbell moved through a vertical displacement of 2.0 m. What was Jon's average power output during the lift?

What approaches can an entrepreneur take to reduce risks : Financial management of fast growth is one of the greatest challenges for entrepreneurial companies. What approaches can an entrepreneur take to reduce risks associated with financing growth

Calculating present values-annual rate of return : Calculating Present Values [LO2] Suppose you are still committed to owning a $225,000 Ferrari (see Problem 9). If you believe your mutual fund can achieve a 12 percent annual rate of return and you want to buy the car in 9 years on the day you turn 3..

What is the payback period and net present value : A 3-year project project with an initial cost of $2,704 promises the following cash flows for years 1 through 3, respectively: $1,653, $1,501, $1,495. If you require a 5.8 percent rate of return on this project, what is the net present value? A proje..

Describe the ways technology plays a role in hrm : What are the major differences between the past and present trends? What are the similarities? Describe the ways technology plays a role in HRM.

What clams have been made with in the last five years : What clams have been made with in the last five years? Have all claims been resolved, if not what is the status. Has the Company made any claims? Are there presently any pending claims related to any of the Company's intellectual properties/.

Ownership interest with bonuses to the existing partners : S. Pagan and T. Tabor share income on a 6 : 4 basis. They have capital balances of $120,000 and $70,000, respectively, when W. Wolford is admitted to the partnership. Prepare the journal entry to record the admission of W. Wolford under each of the f..

What is the minimum number of bonds it must sell to raise : The MerryWeather Firm wants to raise $10 million to expand its business. To accomplish this, it plans to sell 30-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6%. What is the minimum number of bonds it must sell to rais..

User Account

All Pages