What is the project payback period and discounted payback

Assignment Help Financial Management
Reference no: EM131891639

1. Payback

A project has an initial cost of $52,925, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places.

2. Discounted Payback

A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's discounted payback period? Round your answer to two decimal places.

3. MIRR

A project has an initial cost of $40,675, expected net cash inflows of $10,000 per year for 11 years, and a cost of capital of 10%. What is the project's MIRR? Round your answer to two decimal places.

Reference no: EM131891639

Questions Cloud

Complete the risk assessment table : Each team member to review their assigned risk and complete the Risk assessment table for their assigned task.
What is the project operating cash flow for the first year : The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t = 1)?
What would be the nursing home required volume : At $100 per day, what would be the nursing home’s required volume (inpatient days) in order to make $150,000 profit?
What is the per unit inventory cost : Inventory cost at Tech Co. is 39 percent per year. What is the per unit inventory cost ($) for an MP3 player sold at $48? Assume that the margin corresponds.
What is the project payback period and discounted payback : A project has an initial cost of $52,925, expected net cash inflows of $14,000 per year for 7 years, What is the project's payback period?
Prepare a logical data diagram of the existing system : Accounts Payable. Upon receipt of a purchase order, the accounts payable clerk files the purchase order in the open purchase order file.
Calculate present value of the costs-benefits of the project : Calculate the present value of the costs and benefits of the project. Should you undertake the project? Explain.
Successful budget execution at that level of government : What technical and administrative skills are required for successful budget execution at that level of government?
Proposed acquisition of new chromatograph : The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department.

Reviews

Write a Review

Financial Management Questions & Answers

  Describes gaap accounting for this call option

Which of the following accurately describes GAAP accounting for this call option?

  Assume break-even sales figure given is cash flow break-even

In an effort to capture the large jet market, Hiro Airplanes invested $14.264 billion developing its B490, which is capable of carrying 840 passengers. The plane has a list price of $276.5 million. In discussing the plane, Hiro Airplanes stated that ..

  Valuing preferred stock

{valuing preferred stock } a firm has an issue of preferred stock outstanding that pays a $3.5 dividend every year in perpetuity if this issue currently sells for $85 per share what is the required return

  The interest rate on a five-year treasury bonds

The interest rate on a five-year Treasury bonds is 3.1 percent, the rate on six-year T-bonds is 2.9 percent, and the rate on seven-year T-bonds is 2.6 percent. Using the expectations theory, compute the expected one-year interest rates in (a) Year 6 ..

  Quarter to make the purchase using an interest rate

A testing agency needs to purchase $40,000 worth of equipment 2 years from now. How much should the agency put aside each quarter to make the purchase using an interest rate of 20% per year, compounded quarterly?

  Calculate the five year growth in sales and net income

Calculate the five-year growth in sales and net income and determine the compound annual growth rate for each company.

  What is the companys degree of operating leverage

The company has no beginning or ending inventories and produced and sold 10,000 units during the month. What is the company's break-even in units? How many units would the company have to sell to attain target profits of $225,000? What is the company..

  What is standard deviation of returns

What is standard deviation of these returns?

  What is an industry and why is this step important

In order to decide upon a corporate stock investment, most analysts would first perform a industry analysis. What is an industry and why is this step important? Make sure to discuss the potential problems with defining an appropriate industry for com..

  Convince managers to work in best interest of stockholders

Which of the following help convince managers to work in the best interest of the stockholders?

  Firms balance sheet under current liabilities

Other things held constant, which of the following actions would increase the amount of cash on a company’s balance sheet? Which of the following items can be found on a firm’s balance sheet under current liabilities?

  Calculate the minimum transfer balance required

The cash manager of Verematic, Inc., is contemplating the choice between using a wire transfer and an EDT. He estimates that his investment opportunity rate is 9%. The bank's ECR is currently 4%, and the reserve requirement is 12%. Calculate the mini..

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