What is the projects payback

Assignment Help Financial Management

Reference no: EM131907105

1) Project L costs $59,206.43, its expected cash inflows are $12,000 per year for 10 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.

2) Project L costs $45,000, its expected cash inflows are $8,000 per year for 6 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places.

3) A firm with a WACC of 10% is considering the following mutually exclusive projects:

Project 1	-$200	$60	$60	$60	$175	$175
Project 2	-$450	$300	$300	$40	$40	$40

Which project would you recommend? Select the correct answer:

I. Both Projects 1 and 2, since both projects have NPV's > 0.

II. Neither Project 1 nor 2, since each project's NPV < 0.

III. Both Projects 1 and 2, since both projects have IRR's > 0.

IV. Project 1, since the NPV1 > NPV2.

V. Project 2, since the NPV2 > NPV1.

Reference no: EM131907105

Questions Cloud

What is the average accounting return : A project has an initial cost of $40,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project.

What is the probability of two buddies sitting : There are 90 students sitting in a line. Each student has a buddy therefore making 45 pairs. What is the probability of two buddies sitting together?

Find the approximate annual rate of return compounded annual : Sailor Sam needs to have $15,000 at the end of 5 years to fulfill his dream of buying a small sailboat.

List four kinds of cryptanalysis attacks : List three mono alphabetic ciphers. List three polyalphabetic ciphers. List two transposition ciphers. List four kinds of cryptanalysis attacks.

What is the projects payback : Project L costs $59,206.43, its expected cash inflows are $12,000 per year for 10 years, and its WACC is 11%. What is the project's IRR?

Distinguish between a stream cipher and a block cipher : Distinguish between a stream cipher and a block cipher. Are all stream ciphers mono alphabetic? Explain. Are all block ciphers polyalphabetic? Explain.

Distinguish between a substitution and transposition cipher : Distinguish between a substitution cipher and a transposition cipher. Distinguish between a mono alphabetic and a polyalphabetic cipher.

What is the price of a zero-coupon bond with a face value : What is the price of a zero-coupon bond with a face value of $1,000, 4 years to maturity and a yield to maturity of 3.8% compounded semi-annually?

Can you devise a meet-in-the- middle attack for a triple des : If the key with parity bit (64 bits) is 0123 ABCD 2562 1456, find the first round key. Can you devise a meet-in-the- middle attack for a triple DES?

User Account

All Pages