Question

Green Camping Gear, Inc. has a proposal for a project that will have the following cash...

Green Camping Gear, Inc. has a proposal for a project that will have the following cash flows in the next four years. The board of Green will not approve any projects that will pay back in more than 3.5 years. What is the payback period and the discounted payback period for this project? The discount rate is 8%. Using each method, is it a “Go” or a “No Go?”

Investment Beginning of Year 1                   395,000

Income End of Year 1                                 120,000

Income End of Year 2                                205,000

Income End of Year 3                                55,000

Income End of Year 4                                116,000

Payback _______Go or No Go?______   Discounted Payback _______ Go or No Go?______

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
​(Discounted payback period​) Sheinhardt Wig Company is considering a project that has the following cash​ flows:...
​(Discounted payback period​) Sheinhardt Wig Company is considering a project that has the following cash​ flows: If the​ project's appropriate discount rate is 9 ​percent, what is the​ project's discounted payback​ period? The​ project's discounted payback period is nothing years. ​(Round to two decimal​ places.) YEAR   PROJECT CASH FLOW 0   -60,000 1   20,000 2   50,000 3   65,000 4   55,000 5   40,000
 Shell Camping​ Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of...
 Shell Camping​ Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of ​$140,000. John​ Shell, president of the​ company, has set a maximum payback period of 4 years. The​ after-tax cash inflows associated with each project are shown in the following​ table: 1 20,000 50,000 2 30,000 40,000 3 40,000 30,000 4 50,000 20,000 5 30,000 30,000 a.  Determine the payback period of each project. b.  Because they are mutually​ exclusive, Shell must choose one. Which...
An investment project costs $10,000 and has annual cash flows of $3,000 for six years. What...
An investment project costs $10,000 and has annual cash flows of $3,000 for six years. What is the discounted payback period if the discount rate is zero percent? (Do not round intermediate calculations. Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period             years What is the discounted payback period if the discount rate is 6 percent? (Do not round intermediate calculations. Enter 0 if the project never pays...
An investment project costs $10,000 and has annual cash flows of $2,910 for six years.   ...
An investment project costs $10,000 and has annual cash flows of $2,910 for six years.    a. What is the discounted payback period if the discount rate is 0 percent? (Enter 0 if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period if the discount rate is 6 percent? (Enter 0 if the project never pays back...
Sun King Computers is considering the following project. The projected net cash flows are: Initial Cost...
Sun King Computers is considering the following project. The projected net cash flows are: Initial Cost is $3.5 million; annual net cash flows are $815,000 per year for 7 years. What is the Discounted Payback Period if the appropriate discount rate is 7.5%?
Gio's Restaurants is considering a project with the following expected cash? flows: Year Project Cash Flow?...
Gio's Restaurants is considering a project with the following expected cash? flows: Year Project Cash Flow? (millions) 0 ?$(210?) 1 100 2 72 3 100 4 90 If the? project's appropriate discount rate is 11percent, what is the? project's discounted payback? period? The? project's discounted payback period is ____ years? Round to 2 decimal places
An investment project costs $17,000 and has annual cash flows of $4,400 for six years. What...
An investment project costs $17,000 and has annual cash flows of $4,400 for six years. What is the discounted payback period if the discount rate is zero percent? What is the discounted payback period if the discount rate is 6 percent? What is the discounted payback period if the discount rate is 20 percent?
An investment project costs $14,600 and has annual cash flows of $3,500 for six years.   ...
An investment project costs $14,600 and has annual cash flows of $3,500 for six years.    a. What is the discounted payback period if the discount rate is zero percent?    b. What is the discounted payback period if the discount rate is 5 percent?    c. What is the discounted payback period if the discount rate is 19 percent?
32. An investment project costs $21,200 and has annual cash flows of $4,300 for six years....
32. An investment project costs $21,200 and has annual cash flows of $4,300 for six years. a. What is the discounted payback period if the discount rate is zero percent? b. What is the discounted payback period if the discount rate is 3 percent? c. What is the discounted payback period if the discount rate is 19 percent?
An investment project costs $15,600 and has annual cash flows of $3,300 for six years. (A)...
An investment project costs $15,600 and has annual cash flows of $3,300 for six years. (A) what is the discounted payback period if the discount rate is zero percent. (B) what is the discounted payback period if the discount rate is 5 percent?(c) what is the discounted payback period if the dis punt rate is 19 percent?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT