What is the payback period of the project

Assignment Help Financial Management
Reference no: EM13928261

Your required rate of return is 8%. If you invest $15,000 today in a project, you will receive the following cash flows:

At the end of Year 1 $7000

At the end of Year 2 $8000

At the end of Year 3 $9000

What is the NPV of the project? What is the payback period of the project?

Reference no: EM13928261

Questions Cloud

Explain the technology management view of an application : Explain the technology management view of an application and the application lifecycle. What inputs must the information technology manager provide in the design stage?
Consolidation strategy that will require it to centralize : A prestigious university has recently implemented a consolidation strategy that will require it to centralize their student records. In order to move forward, the local university will need to develop a data model that will retain student records ..
Usage of fixed cost financial securities to finance portion : Financial leverage has to do with A. the usage of fixed cost financial securities to finance a portion of a firm's assets. B. using common stock to finance a portion of a firm's assets. C. the incurrence of fixed operating costs in the firm's income ..
Calculate the net investment required to acquire the new saw : Seco Dame Enterprises (SDE) acquired a robotic saw six years ago at a cost of $10 million. Calculate the net investment required to acquire the new saw.
What is the payback period of the project : Your required rate of return is 8%. If you invest $15,000 today in a project, you will receive the following cash flows: What is the NPV of the project? What is the payback period of the project?
Project with the following projected cash flows : Thompson Industries has a project with the following projected cash flows:
How are emotions linked to memories : Video: https://www.youtube.com/playlist?list=PL35B9B52BF0F4238D. How are emotions linked to memories? Provide some examples to support your answers
What will the WACCs be for each division : Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D, with average betas for each division of 0.9, 1.3, 1.4, and 1.5, respectively. What will the WACCs be for each div..
Playing card with a face value and a suit : The Card structure below represents a playing card with a face value and a suit. Using the main code given, set the cards in the deck array to be one of each kind of playing card.

Reviews

Write a Review

 

Financial Management Questions & Answers

  All prescription drugs sales by volume

While generics account for more than three quarters of all prescription drugs sales by volume, they account for only 10% of all prescription sales revenues. It was not until after World War II, that it became clear that control over drug safety mecha..

  How do market values affect the goal of financial managers

How do book values and market values affect the goal of financial managers? How will a firm determine if its level of liquidity is appropriate?

  What is the firms weighted average cost of capital

Jett’s Carwash has $4 billion in debt and $2 billion in equity. The firm’s cost of debt of 3.3 percent and a cost of equity of 14.4 percent (assume that these costs do not change with the capital structure). The tax rate is 35%. What is the firm’s we..

  Calculate the holding period return on a before-tax basis

Mary and Nick Stalcheck have an investment portfolio containing 4 investments. It was developed to provide them with a balance between current income and capital appreciation. Calculate the holding period return on a before-tax basis for each of thes..

  Planning bond issue with an escalating coupon rate

Demand corporation is planning a bond issue with an escalating coupon rate. the annual coupon rate will be 4 percent for the first 3 years, 5 percent for the subsequent 3 years, and 6 percent for the final 3 years. if bonds of this risk are yielding ..

  Statements concerning disbursement float

Which one of the following statements concerning disbursement float is correct?

  Production efficiency-annual pretax cost savings

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $495,000 is estimated to result in $194,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Ta..

  Investors believe that dividends will grow-current price

McIver, Inc. currently pays a $2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% for the following year, and 6% annually thereafter. The required return is 10%. What is the current price of the stock?

  Spot rates-discount rate

Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. Recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. What is the discount rate d(0,2)?

  Calculate the depreciation expense

You are given the following information for Gandolfino Pizza Co.: sales = $45,000; costs = $21,500; addition to retained earnings = $8,750; dividends paid = $1,000; interest expense = $5,500; tax rate = 35 percent. Calculate the depreciation expense...

  Requires an investment in new equipment

Newcastle Coal Company is considering a project that requires an investment in new equipment of $3,800,000, with an additional $190,000 in shipping and installation costs. Newcastle estimates that its accounts receivable and inventories need to incre..

  What is the implied peso borrowing rate

You have a line of credit for $1,000,000 at 4% for six months from Bank of America. You need to borrow 10,000,000 Mexican Pesos for six months. The spot FX rate is 13 P/$ and the 6-month forward rate is 13.25 P/$. All interest rates are quoted on an ..

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