What is the projects payback period

Assignment Help Financial Management
Reference no: EM13877996

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and cost of capital of 11%. What is the project's NPV?

Payback: refer to the problem, what is the project's payback period?

Show me the steps please.

Reference no: EM13877996

Questions Cloud

Performance is measured : Performance is measured by
You own a security that provides an annual dividend : You own a security that provides an annual dividend of $170 forever. The security’s annual return is 7%. What is the present value of this security? Round your answer to the nearest cent
The use of accelerated depreciation : The use of accelerated depreciation
A high current ratio suggests that the firm : A high current ratio suggests that the firm:
What is the projects payback period : A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and cost of capital of 11%. What is the project's NPV? Payback: refer to the problem, what is the project's payback period?
Making plans for retirement : You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $75,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retire..
Money market account with an annual return : You plan to deposit $1,500 per year for 6 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 6 years? Round your answer to the near..
Calculate the NPV for both conveyor belt systems : Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $264,000, has a four-year life, and requires $81,000 in pretax annual operating costs. Calculate the NPV for both conveyor belt sy..
How much will you be able to withdraw at end of five years : You deposit $2,300 into an account that pays 4% per year. Your plan is to withdraw this amount at the end of 5 years to use for a down payment on a new car. How much will you be able to withdraw at the end of 5 years? Round your answer to the nearest..

Reviews

Write a Review

Financial Management Questions & Answers

  Considered in financial planning and forecasting process

You are the CEO of a company of your choosing and your firm has begun its 2016 financial planning and forecasting. What are the key financial statements that you want to include in this process and why? What key questions need to be answered in this ..

  Asymmetric information between investors and managers

Consider a firm where the effort undertaken by managers can affect cash flows in the next period. For simplicity, assume managers either exert low effort or high effort. Assume that investors cannot observe effort. Assume that, with low effort, the f..

  The value of financial asset

The value of a financial asset is the ____

  Rank the tools in order of importance to the job requirement

If each of the positions below, if you were required to choose two major financial tools to focus on and become expert at, which would you choose? Explain your answers. Support your answers by providing at least one example of why your chosen tools a..

  How important is good governance and ethics for a firm

How important is good governance and ethics for a firm? Provide answers with examples and theoretical explanations.

  What is now your effective interest rate

If you’re average daily balance on your credit card in June is $1,200 and your APR is 18%, how much interest do you pay the next billing cycle? If you also incurred a $29 late charge, what is now your effective interest rate?

  What would be the additional funds needed

Broussard Skateboard's sales are expected to increase by 15% from $8.6 million in 2013 to $9.89 million in 2014. Its assets totalled $6 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as pro..

  Quantitative problem-what is the value of the bond

Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7.2%, what is the value of the bond? Round your answer to the nearest cent. D..

  Calculate the greek connections net working capital

Calculate The Greek Connections net working capital in 2012 and calculate the cash conversion cycle of The Greek Connection in 2012.

  What is the expected annual cash flow

Cooper Commons is considering purchasing new, technologically advanced solar panels. The equipment will cost $625,000 with a salvage value of $50,000 at the end of its useful life of 10 years. The excess electricity from the panels will be sold back ..

  What are some reasons for either type of labor variance

Now let's discuss labor variances. Discuss the two labor variances that may occur, including how they are calculated. What are some reasons for either type of labor variance?

  Computers operates plant with annual capacity

A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of its models is expected to sell 390,000 units in the coming year. How large should each product lot be if it costs $575 to change production ..

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