What is the project regular payback

Assignment Help Accounting Basics
Reference no: EM131754603

Question - Haig Aircraft is considering a project that has an up-front cost paid today at t = 0. The project will generate positive cash flows of $60,000 a year at the end of each of the next five years. The project's NPV is $75,000 and the company's WACC is 10%. What is the project's regular payback?

3.22 years

1.56 years

2.54 years

2.35 years

4.16 years

Reference no: EM131754603

Questions Cloud

Probability of an empty system and expected number of units : Probability of an empty system (P0) and expected number of units in the queue (Lq) for queuing systems with Poisson arrivals and exponential arrival times.
Kaizen philosophy seeks to encourage suggestions : The kaizen philosophy seeks to encourage suggestions, not to find excuses for failing to improve.
Differ in responding to each market segment : Are there programmatic differences? How might the four Ps differ in responding to each market segment?
Prepare schedule of cash receipts or cash payments : Prepare schedule of cash receipts or cash payments. Identify costs by behavior -fixed, variable, direct, indirect, overhead, prime, conversion, mixed
What is the project regular payback : Haig Aircraft is considering a project that has an up-front cost paid today at t = 0. What is the project's regular payback
Caterpillar payments outstanding : How long, on average, are Caterpillar’s payments outstanding? Assume a year has 360 days.
How much will your account be worth : Suppose you deposit $100 in a savings account that compounds annually at 2%. After 1 year at this rate, the bank changes its rate of compounding to 1.5%.
Explain the complete role of project manager : BUSS1501 - Discuss the concept of Inventory Management, ABC classifications, advantages and disadvantages and Explain the production project planning
How will the distribution be treated : The sole shareholder receives a $27,000 cash distribution from the corporation. How will the distribution be treated if the basis in the stock is $12,200

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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