What is the projects discounted payback in years

Assignment Help Financial Management
Reference no: EM131068825

Discounted payback Project K costs $35,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 9%. What is the project's discounted payback in years? Round your answer to two decimal places.

Reference no: EM131068825

Questions Cloud

What would be the weight used for equity in the computation : OMG Inc. has 6 million shares of common stock outstanding, 5 million shares of preferred stock outstanding, and 7,000 bonds. Suppose the common shares are selling for $17 per share, the preferred shares are selling for $26 per share, and the bonds ar..
Bond issue on the market that matures : Acme Corporation has a bond issue on the market that matures in 16 years, each bond has a $1,000.00 par value and pays an annual coupon. The bonds currently sell for a price of $1,233 each. If the market rate (yield to maturity) on this issue is 7% w..
Current market required rate of return on bonds : A bond pays an annual coupon of $98 has a face value of $1,000 and has 19 years remaining until maturity. If the current market required rate of return on bonds of this type is 14% what is the market price of the bond? State your answer in dollars an..
Before-tax component cost of debt : KatyDid Clothes has a $120 million (face value) 25-year bond issue selling for 103 percent of par that carries a coupon rate of 9 percent, paid semiannually. What would be Katydid’s before-tax component cost of debt?
What is the projects discounted payback in years : Discounted payback Project K costs $35,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 9%. What is the project's discounted payback in years? Round your answer to two decimal places.
What are the risks involved in purchasing the new machine : You are the owner of a company that produces Zumba toning sticks, and business is really on the rise. The Zumba machine you currently use can produce 10,000 toning sticks per week (5,000 pairs) on a single 8 hour production shift. What are the risks ..
Two different types of vehicles-higher cost : Warner Cable Company needs to replace 5 vehicles in its 50 vehicle fleet. Warner is considering two different types of vehicles: a higher cost, higher gas mileage vehicle (Vehicle Type HC) or a lower cost, lower mileage vehicle (Vehicle Type LC). Wha..
What is the market price of the bond : A bond pays an annual coupon of $86 has a face value of $1,000 and has 6 years remaining until maturity. If the current market required rate of return on bonds of this type is 10% what is the market price of the bond?
Find the equation of the plane : The intercepts made by a plane made on the coordinate axes are in the ratio 2:3:4. If the plane passes through(5,0,-2), find the equation of the plane.

Reviews

Write a Review

Financial Management Questions & Answers

  Mitigated foreign exchange risk through methods

Access the NAU Online Library and research on ProQuest a firm that mitigated foreign exchange risk through methods such as currency swaps, currency futures, forward transactions, etc. What method was used and what was the result? If the firm has used..

  Radiology group-what is group underlying cost structure

Assume that a radiology group practice has the following cost structure: what is the group underlying cost structure? what are the group estimated total cost at 5,000 procedures? At 10,000 procedures? What is the average cost per procedure at 5,000, ..

  A baller has been offered the new contracts

A Baller has been offered the following new contracts. All are guaranteed. If the discount rate is 6% how much is each worth today? Which do you think is the best option? Why? A yearly contract for $20 million per year for each of the next 4 years. A..

  Considering project with an initial fixed asset cost

Gateway Communications is considering a project with an initial fixed asset cost of $2.872 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold..

  Considering an investment with the cash flows

You are considering an investment with the following cash flows. If the required rate of return for this investment is 13.5%, should you accept it based solely on the internal rate of return rule? Why or why not?

  Depreciated straight-line to zero over their lives

Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $244,000, has a four-year life, and requires $76,000 in pretax annual operating costs. System B costs $342,000, has a six-year life..

  The proportion of interest versus principal repayment

A $150,000 loan is to be amortized over 6 years, with annual end-of-year payments. Which of these statements is CORRECT? The proportion of interest versus principal repayment would be the same for each of the 7 payments. The proportion of each paymen..

  Dominant form of institutional venture capital firms operate

The dominant form of institutional venture capital firms operate as?

  Management reported that net income rose

Buckin’ Bronco Corp. posted EBITDA of $305,080, EBIT of $262,620, and EBT of $205,450. Management reported that net income rose by 5% from the previous year and the market value of assets rose by 3%. Using the tax table below, how much will Buckin’ B..

  What is the price of this annual coupon bond

AAA firm’s semiannual bond has 12 years maturity and coupon rate of 8.75% semiannually. The firm also sells annual bonds with all the same condition except the coupon is paid annually (means ytm is the same). What is the price of this annual coupon b..

  Desires fixed annual income

Jonas desires fixed annual income of $85,000 beginning 20 years from now and lasting for 20 years. He plans to deplete the account. His annual required return is 9.5%. How much does he need to invest today to achieve his goal?

  Financial company that advertises on television

A financial company that advertises on television will pay you $61,000 now for annual payments of $9,400 that you are expected to receive for a legal settlement over the next 11 years. Assume you estimate the time value of money at 12 percent.

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