What is the payback period without discounting cash flows

Assignment Help Financial Econometrics
Reference no: EM13336445

Consider the following four-year project. The initial after-tax outlay is $550,000. The future after-tax cash inflows for years 1, 2, 3 and 4 are: $175,000, $250,000, $280,000 and $200,000, respectively. What is the payback period without discounting cash flows?

Reference no: EM13336445

Questions Cloud

Estimate the companys total variable cost : Estimate the company's total variable cost per unit and its total fixed costs per year and compute the company's contribution margin for July.
Define standard electrode potential for the reduction eu2+ : 1)The standard electrode potential for the reduction of Eu3+(aq) to Eu2+(aq) is ?0.43 V. determine which of the following is capable of reducing Eu3+(aq) to Eu2+(aq) under standard-state conditions
Evaluate original decision to acquire the automated machine : Re-compute the predetermined rate assuming that the new machine will be installed and explain why the new predetermined overhead rate is higher (or lower) than the rate that was originally estimated for the year 2014
What issues prompted the revision fo the federal sentencing : What issues prompted the revision fo the federal sentencing guidelines for organizations in 2004?
What is the payback period without discounting cash flows : Consider the following four-year project. The initial after-tax outlay is $550,000. The future after-tax cash inflows for years 1, 2, 3 and 4 are: $175,000, $250,000, $280,000 and $200,000, respectively.
Depict the structures of the secondary alcohols : Draw the structure(s) of the secondary alcohols with the chemical formula C6H14O that have a 6-carbon chain.Although stereochemistry may be implied in the question, DO NOT consider stereochemistry in your drawing.
Financial reporting for publicly traded companies : How has the Sarbanes-Oxley Act of 2002 affected financial reporting for publicly traded companies? Do you think that the Sarbanes-Oxley Act is effective in promoting ethical behavior for financial professionals? Why or why not?
How many times would you like to shuffle the sorted list : You are required to implement your designs in C++ Programming Language. Your program should be properly laid out and should be modular, making sure that software engineering aspects of modularity and reusability are fully considered.
Calculate the force that the road exerts on the vehicle : A banked curve has been designed so that it is safest for a vehicle going 70mph. A 5512 lb vehicle travels with a speed of 60 mph on the curve. Calculate the force that the road exerts on the vehicle

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What is expected return on stock that pays a annual dividend

what is the expected return on a stock that pays a 4% annual dividend and whose price is expected to appreciate annually at 6%

  Calculate the expected exchange rate

Use a properly labelled IS-LM graph to analyze and illustrate the effect and calculate the expected exchange rate for the end of the year.

  What amount of money sarah will have to invest today is

If Sarah can earn 7 percent annually for the next 26 years, the amount of money she will have to invest today is. If Sarah earned an annual return of 17 percent, how soon could she then retire.

  Determine balance in each account and prepare a trail sheet

Prepare journal entries and record the following October transactions in the T-Accounts and key all entries with the number identifying the transaction. Determine the balance in each account and prepare a trail balance sheet as of October 31.

  What is the contribution margin per procedure point

Assume that a specialty group has the following cost structure and that the group expects to perform 7,500 procedures in the coming year: Fixed costs $500,000 Variable Cost per procedure $25

  Compute the approximate yield to maturity by the tyler food

Bonds issued by the Tyler Food Corporation have a par value of $1,000, are selling for $1,270, and have 20 years remaining to maturity. The annual interest payment is 21.5 percent ($215). Compute the approximate yield to maturity.

  Determine what would be the cost of new equity

The growth rate is a constant 8.4%, and the company has an expected dividend yield of 3%. The expected long-run dividend payout ratio is 40%, and the expected return on equity (ROE) is 14%.

  How many units must firm sell to earn in operating profit

A firm with $49,000 in fixed costs breaks even on unit sales of 7,000, how many units must the firm sell to earn $30,000 in operating profit

  What criteria should managers use in selecting projects

What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects

  Determine the redemption value compounded monthly

Face value of a bond with monthly coupons is $1000. The coupon rate is a nominal annual rate of 4.8% compounded monthly. The yield rate is a nominal annual rate of 3.6% compounded monthly.

  Calculate the price of a 8percent 1000dollar coupon bond

Calculate the price of a 8%, $1,000 coupon bond with 15 years left to maturity and a market interest rate of 5%. (Assume interest payments are semiannual.) Is this a discount or premium bond

  Determine how many cars must the firm sell to break even

Assume your firm is an auto manufacturer. Its fixed cost for a certain type of car is $5 billion. The variable cost per unit is $18,000, and you sell the car for $30,000.

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