What is the project payback period

Assignment Help Financial Management
Reference no: EM131967596

(similar to) (Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $75,000 and expected free cash flows of $25,000 at the end of each year for 5 years. The required rate of return for this project is 6 percent.

a. What is the project's payback period?

b. What is the project's NPV ??

c. What is the project's PI?

d. What is the project's IRR?

Reference no: EM131967596

Questions Cloud

Strategic implications of pursuing internal growth strategy : Discuss the strategic implications of pursuing an internal growth strategy versus growth through M&A deals (mergers and acquisitions).
Is capitol federal stock over or under valued : Compare its intrinsic value to the stock’s closing price on 2/9/18. Is Capitol Federal’s stock over or under valued?
Company is considering two proposals for lockboxes : A company is considering two proposals for lockboxes. Which is the better deal?
The current price is represented by the dividends forcast : Refering to the above information what percentage of the current price is represented by the dividends forcast to be paid after year 4?
What is the project payback period : What is the project's payback period? What is the project's NPV. What is the project's PI?
What is the cash flow to shareholders for the company : What is the cash flow to shareholders for the company. Cash Flow to Shareholders.
What is the current value of operations : If the overall cost of capital is 14 percent, what is the current value of operations, to the nearest million?
What happens to bond value as time moves toward maturity : when required return differs from coupon interest rate and is assumed to be constant to maturity, what happens to bond value as time moves toward maturity?
The company achieve without having to raise funds : How large of a sales increase can the company achieve without having to raise funds externally?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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