What is the payback period for project

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1. A project has an initial cost of $31,400 and produces cash inflows of $7,200, $8,900, $7,500, $2,100, and $6,500 over the next five years, respectively. What is the payback period for this project? should this project be accepted if management's cutoff period is 4 years?

2. A project has an initial cost of $7,900 and cash inflows of $2,100, $3,140, $3,800, and $4,500 a year over the next four years, respectively. Assume a discount rate of 10%. What is the discounted payback period? should this project be accepted if the management's cutoff period is 3 years?

3. You are evaluating two different silicon wafer milling machines. The Techron I costs $320,000, has a four-year life, and has operating costs of $85,000 per year. The Techron II costs $456,000, has a six-year life, and has operating costs of $46,000 per year. Assume a discount rate of 10 percent.

What is the NPV (cost) of Techron I's cash flows?

Reference no: EM132637812

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