Question

HC organization is analyzing when a proposed investment will break even assuming the cash flow of...

HC organization is analyzing when a proposed investment will break even assuming the cash flow of each year 12,000, 5,000,5,000,2,500, and 1,000 over the next 5 years.the initial investment is 22,000.

using the discounted payback period method when will the organization break even? 5% cost of capital. Do in excel

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

hence, organization's breakeven on proposed investment will occur at 3.835 years

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cash Payback Method (Even cash flows) Suppose that a particular investment required an up-front capital outlay...
Cash Payback Method (Even cash flows) Suppose that a particular investment required an up-front capital outlay of $100,000. This investment is expected to yield cash flows of $40,000 per year for 10 years. What is the payback period for this investment? If required, round your answer to two decimal places. Cash Payback Period = $ / $ =  years Payback Period (Uneven cash flows) When the annual cash flows are unequal, the payback period is computed by adding the annual cash...
Suppose a company had an initial investment of $45,000. The cash flow for the next five...
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $17,000, $13,000, $14,000, $17,000, and $20,000, respectively. The interest rate is 10%. What is the discounted payback period?    ___________(Enter only whole numbers)
Vilas Company is considering a capital investment of $190,000 in additional productive facilities. The new machinery...
Vilas Company is considering a capital investment of $190,000 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $12,000 and $50,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Compute the cash payback...
An investment project requires a net investment of $100,000. The project is expected to generate annual...
An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5 years. The firm's cost of capital is 12 percent. Determine whether you would accept or reject the project using the discounted payback period method. The company rejects projects that exceed a discounted payback period of over 3 years.        4.94 years, Reject the project        2.5 years, accept        4.09 years, accept        1.43 years, accept        You cannot calculate...
1. Using a conservative end of period cash flow approach when applying the conventional payback method,...
1. Using a conservative end of period cash flow approach when applying the conventional payback method, what is the payback period when the upfront investment is 124,000 and the end of period cash flow is 25,000?
A project that requires an initial investment of $100,000 and generates the following cash flows: YEAR...
A project that requires an initial investment of $100,000 and generates the following cash flows: YEAR CASH FLOWS 1                   30,000 2                   35,000 3                   40,000 4                   20,000 5                   19,000 If the cost of capital is 8.5% have a discounted payback period of _______________
Black System is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to...
Black System is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to sell 12,000 units, ±5 percent. The expected variable cost per unit is $7 and the expected fixed costs are $28,000. The fixed and variable cost estimates are considered accurate within a ±5 percent range. The sales price is estimated at $16 a unit, ±4 percent. The project requires an initial investment of $153,000 for equipment that will be depreciated using the straight-line method to...
Question 4 (Total marks =15) You are evaluating an investment project, Project XX, with the following...
Question 4 (Total marks =15) You are evaluating an investment project, Project XX, with the following cash flows: Period Cash Flow 0 -$200,000 1 $65,000 2 $65,000 3 $65,000 4 $65,000 5 -$65,000 Calculate the following: (a). Payback period ( 2 marks) (b). Calculate the discounted cash flows for each year, assuming a 10% discount rate. (c) Discounted payback period, assuming a 10% cost of capital. (d) .Net present value, assuming a 10% cost of capital. (e). Profitability index, assuming...
What is the discounted cash flow in the final year of an investment assuming: $7,000 after-tax...
What is the discounted cash flow in the final year of an investment assuming: $7,000 after-tax cash flows from operations, the machine that is depreciated to $2,000 is sold for $4,000, the project had initially required $4,000 in additional working capital, and a 35% marginal tax rate? Assume the investment has a 10-year life and the discount rate is 12 percent.
What is the discounted cash flow in the final year of an investment assuming: $7,000 after-tax...
What is the discounted cash flow in the final year of an investment assuming: $7,000 after-tax cash flows from operations, the machine that is depreciated to $2,000 is sold for $4,000, the project had initially required $4,000 in additional working capital, and a 35% marginal tax rate? Assume the investment has a 10-year life and the discount rate is 12 percent.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT