User Account

All Pages

What is the project payback

Assignment Help Finance Basics
Reference no: EM132000592

Barnard Manufacturing Company is considering a three-year project that has a cost of $ 75,000. The project will generate after-tax cash flows of $ 33,100 in Year 1, $ 31,500 in Year 2, and $ 31,200 in Year 3. Assume that the firm's proper rate of discount is 10% and that the firm's tax rate is 40%. What is the project's payback?

Reference no: EM132000592

Questions Cloud

Compute taxable income and income taxes payable : Metal's tax rate is 40% for all years, and the company expects to report taxable income in all future years. Compute taxable income and income taxes payable
Should she assign to this property if she has been renting : If she sells the house she will incur $20,000 in expenses. She is considering converting the house into professional office space.
Should summit petroleum corporation purchase the asset : The Summit Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation.
Today in order to his retirement annuity : Using an interest rate of 10%, how much must Joshep invest today in order to have his retirement annuity?
What is the project payback : Assume that the firm's proper rate of discount is 10% and that the firm's tax rate is 40%. What is the project's payback?
Does gasb require updated capital assets values be on record : Any suggestions on the following? I realize that current appraisals might be needed on recorded for repalcement of capital assets via insurance.
How much of this is repayment of principal : For the very last payment on your loan, how much of this is repayment of principal?
The performance forecast and expected earnings : Suggest how corporate management can provide assurances to investors that the performance forecast and expected earnings will be realized.
What is the periodic interest rate : Your credit card, upon which you make monthly payments, has a quoted annual interest rate of 20.2. What is the periodic interest rate?

Reviews

Write a Review

Finance Basics Questions & Answers

  Types of risks faced by investors in bonds

In brief explain the types of risks faced by investors in domestic bonds? Also point out the additonal risks associated with nondomestic bonds. Describe the differece between Stocks and Bonds and which one Corporations use most to raise capital.

  Assuming equal yearly cash flows what are the expected

using the payback and rate of return methods to make capital investment decisionssuppose smith valley is deciding

  Assume that a company records purchases net of discount if

assume that a company records purchases net of discount. if the company bought merchandise valued at 10000 on credit

  What will the price be if investors expect that the bond

a 1000 bond has a coupon rate of 10 percent and matures aftereight years. interest rates are currently 7 percent. what

  What is the expected year-end dividend

Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1? a. $3.25 b. $2.44 c. $2.96 d. $2.20..

  Workers compensation medical claim

A workers compensation medical claim is set up to cover medical costs for the next 12 years. It will make an initial payment at time t=0 of $10,218.

  Calculate the bank risk weighted assets before and after

Calculate the bank's risk-weighted assets before and after the agreement. Problems 4 through 11 relate to a sequence of transactions at OldhatFinancial.

  Determining the maturity risk premium

The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2 year treasury securities? What is the yield on 3 year treasury se..

  Why you made the decision to pursue an undergrad degree

Describe how and why you made the decision to pursue an undergrad degree. In the description, include calculations of expenses and opportunity costs related to that decision.

  What level of asset turnover would yield negative roei

A One-Stop Forecast of Residual Operating Income (Easy) An analyst predicted the following.

  Determine the risk premium and average risk premium

Here are stock market and Treasury bill returns between 1997 and 2001, Determine the risk premium on common stock in each year?

  What is the difference between the risk-free and risky

what is the difference between the risk-free and risky interest rate is

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd