Calculate the projects payback period, Financial Management

Assignment Help:

Project Z has a cost of $ 50,000.00, its expected net cash flows are $11,000 per year for 8 years, and its cost of capital is 12 % (Hint: begin by constructing a time line).

Instructions:

a. Calculate the project's payback period.
b. Calculate the project's discounted payback period.
c. Calculate the project's NPV.
d. Given that IRR for project Z = 15%, compared to another project; project B that has IRR= 18%? Evaluate project Z.

You plan to invest your money in a project that has the following set of cash flows?

Year Cash Flows

0 -$2,500
1 300
2 1,500
3 1,100
4 1,000

a. Calculate the project's payback period.
b. Calculate the project's discounted payback period given that cost of capital is 12 %.
c. Calculate the project's NPV.
d. According to the results in the previous sections; will you invest your money in the project? Explain.


Related Discussions:- Calculate the projects payback period

What are the aspects of receivables management, Q. What are the Aspects of ...

Q. What are the Aspects of Receivables Management? Scope or else Aspects or Receivables Management: - Extent of receivables management is quite wide. It comprises the following

Capital gain on investment, a. Why do prices of low coupon bonds tend to fl...

a. Why do prices of low coupon bonds tend to fluctuate more than the prices of high coupon bonds? And why do prices of longer te$ to maturity bonds tend to fluctuate more than th

Financial management, DEFINITION OF FINANCIAL MANAGEMENT The term finan...

DEFINITION OF FINANCIAL MANAGEMENT The term financial management has been described by management experts in several ways reflecting the duties and responsibilities of a financ

State about the audit plan contents, State about the Audit plan contents ...

State about the Audit plan contents 1. Report requirements and terms of reference. 2. A review of business and financial position, reviewing why changes had occurred in curr

State the types of integration, State the Types of integration ...

State the Types of integration Types of integration Horizontal Target company has same operations, and is in the same industry

Management of sundry debtors, Management of Sundry Debtors: SUNDRY - M...

Management of Sundry Debtors: SUNDRY - Miscellaneous infrequent or small customers that are not given individual ledger accounts but are classified as a group. SUNDRY CREDI

Gordon''s dividend capitalization method, formula and explanation for Gordo...

formula and explanation for Gordon''s dividend capitalization method

What do you signify by receivables management, Q. What do you signify by Re...

Q. What do you signify by Receivables Management? Ans. Receivable Management: - The term receivables refer to debt outstanding to the firm by the customers resulting from sale

Explain transaction exposure, How would you explain transaction exposure? H...

How would you explain transaction exposure? How is it different from economic exposure? Answer:Transaction exposure is the sensitivity of comprehend domestic currency values of

Determine the working capital cycle, Working capital cycle (operating/tradi...

Working capital cycle (operating/trading/cash cycle) It is the time between paying for goods supplied and final receipt of cash from their sale. It is desirable to keep cycle a

Write Your Message!

Captcha
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