What is the payback period for project

Assignment Help Financial Management
Reference no: EM132037885

McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $192104 on research and development for the new clubs. The plant and equipment required will cost $2851580 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $128160 that will be returned at the end of the project. The annual OCF of the project will be $886944. The tax rate is 28 percent, and the cost of capital is 8 percent. What is the payback period for this project?

Reference no: EM132037885

Questions Cloud

Bonds with warrants if they are to clear the market : What coupon interest rate must the company set on the bonds with warrants if they are to clear the market.
What is the npv for project : McGilla Golf has decided to sell a new line of golf clubs. What is the NPV for this project?
What is the value of strangle at maturity : What is the value of the strangle at maturity as a function of the then stock price?
What is the corporations weighted average cost of capital : What is the corporations weighted average cost of capital?
What is the payback period for project : The tax rate is 28 percent, and the cost of capital is 8 percent. What is the payback period for this project?
What will the firm pe ratio : What will the firm’s PE ratio be if the firm repurchases 25,000 shares? Assume all else remains constant.
Two retirement policies described : You are able to choose between two retirement policies described below.
Calculate the hernandez total return for investment : During the 12-month period the couple owned the stock, Macy’s paid dividends that totaled $0.75. Calculate the Hernandez total return for this investment.
Use european options to create short forward position : Use European options to create a short forward position, where you agree today to sell a stock in three months at a (forward) price of K.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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