What is the project payback period

Assignment Help Finance Basics
Reference no: EM13946207

You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of each year for 6 years. The required rate of return this project is 10 percent.

1. What is the project payback period?

2. What is the project NPV?

3. What is the project PI?

4. What is the project IRR?

Reference no: EM13946207

Questions Cloud

Finite-difference method of solution : Use the finite-difference method of solution to obtain qf when the convection and radiation coefficients are based on local, rather than average, tem- peratures for the fin. How does your result compare with the analytical solution of part (a)?
Identify two risks in each of these strategies : Buy a system created for another school and modify it to fit this school's specific requirements
Estimate the surface temperature : An electric immersion heater, 10 mm in diameter and 300 mm long, is rated at 550 W. If the heater is horizon- tally positioned in a large tank of water at 20°C, estimate its surface temperature. Estimate the surface temperature if the heater is ac..
Summaries the successes and failures of outsourcing contract : Summaries the successes and failures of this outsourcing contract. Evaluate the reasons for the successes and failures. What do you think that other organization considering large-scale total outsourcing could learn from this case study?
What is the project payback period : You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of each year for 6 years. What is the project payback period
Why is a documentation plan important : What are the key components of change theory and how can they be put into practice?
Estimate the surface temperature of the cable : Determine the water outlet temperature, the total heat transfer rate, and the time required to completely liquefy the paraffin, temperature is 27°C, estimate the surface temperature of the cable.
Calculate the heat loss per unit length from the pipe : A horizontal uninsulated steam pipe passes through a large room whose walls and ambient air are at 300 K. The pipe of 150-mm diameter has an emissivity of 0.85 and an outer surface temperature of 400 K. Calculate the heat loss per unit length from..
Explain what fields might be used as keys and indexes. : Describe any limitations or constraints related to the data and how it is structured.

Reviews

Write a Review

Finance Basics Questions & Answers

  If anthonys required rate of return is 10 then the most he

anthony operates a part time auto repair service. he estimates that a new diagnostic computer system will result in

  Reaction of foreign exchange market

What was the likely reaction of the foreign exchange market to Mr. Greenspan's statements. Explain. Can Mr. Greenspan support the value of the U.S. dollar without intervening in the foreign exchange market? If so, how?

  Training for foreign assignment

From a diversity standpoint, what do you need to know about your targeted learners and the training requirements needed prior to taking an assignment in a foreign country.

  Find the redemption amount on this bond

A $2,500 6.5% eight year bond had annual coupons. If it is purchased for $2,590, the investor will anticipate 5.4% annual yield for the eight year investment. Find the redemption amount on this bond.

  What is the best estimate of the stock current market value

ABC just paid a dividend of D0 = $4.1. Analysts expect the company's dividend to grow by 31% this year, by 21% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on this stock is 11%. What is the best estimate of..

  What is its current stock price

Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 30% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (r) is 11%, what is its current stoc..

  Normal returns on company stocks

Suppose you found that you can make above normal returns if you buy oil-company stocks just before noon on any given trading day, and sell them immediately before the market closes that same day.

  Which two short-term liquidity ratios measure how

1. which two short-term liquidity ratios measure how frequently a company collects its accounts?2. what measure

  What is the yield to maturity

Various calculated Bond Yields are listed as Answer along with name of each type of yield as questions. Your task is to match the appropriate Answer with Question.

  Finding least risky and most risky project

A Corporation is planning three different capital projects. Each project will require the same amount of capital outflow.

  You are evaluating the attractiveness of johnson

you are evaluating the attractiveness of johnson manufacturing corporation common stock. using the capital asset

  Calculate the n, r, mo and me

Toyco needs to raise $5 million in a rights offering. If the subscription price is $10 per share, the stock price is $12.50 per share, and there are 4 million shares outstanding, calculate the N, R, Mo and Me.

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