What is the payback period for this project

Assignment Help Accounting Basics
Reference no: EM132350046

Question - Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent. What is the payback period for this project?

1.7 years

2.2 years

1.2 years

2.7 years

Reference no: EM132350046

Questions Cloud

Briefly discuss the different control strategies : Discuss the difference between risks and threats. Briefly discuss the different control strategies. Define control
Promised to buy the instrument : Siros owned a "Guarnerius," a rare violin made by Guarneri in 1705. He entered into a contract whereby he promised to sell, and Lister promised to buy
Discussion petition the government for redress of grivances : Discussion Petition the government for Redress of grivances. Clearly one of the roles for interest groups is the role of "watchdogs" and advocates.
Contract was in the nature of a doubtful claim : Nydegger, a contractor, who held a policy of insurance for $6,000 on the life of his debtor, Stewart, whose whereabouts were unknown, finding it difficult
What is the payback period for this project : Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. What is the payback period for this project
Why is it important to analyze the leadership styles : Why is it important to analyze the leadership styles from a contingency point of view?
Janice agreed to buy a registered horse named diamond : Janice agreed to buy a registered horse named Diamond. Diamond was kept at a farm / boarding stable owned by Farmer.
Affordable healthcare act-any policy issue of your choice : Then construct constitutive and operational definitions for any three policy actions and outcome variables that would be associated with your policy
Calculate free cash flow : Hinck Corporation reported net cash provided by operating activities of $380,000, Calculate free cash flow

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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