Question

1. Suppose you are considering investing $900,000 in a project. The annual net cash inflows over...

1. Suppose you are considering investing $900,000 in a project. The annual net cash inflows over the next five years are: $150,000; $200,000; $250,000; $400,000; $450,000. Calculate the payback period for the investment

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
You are considering a project with an initial cost of $35,000 and cash inflows of $20,000,...
You are considering a project with an initial cost of $35,000 and cash inflows of $20,000, $15,000, $10,000, and $5,000 over the next four years, respectively. If you require a 13% rate of return and have somehow decided on an appropriate discounted payback period of 3.5 years, should you accept this project? Why or why not? Group of answer choices A. Yes, because the discounted payback period is over 3.5 years B. No, because the discounted payback period is over...
The NPV and payback period Suppose you are evaluating a project with the cash inflows shown...
The NPV and payback period Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. The project's annual cash flows are: Year Cash Flow Year 1 $400,000 Year 2 600,000 Year 3 500,000 Year 4 475,000 If the project’s desired rate...
7. The NPV and payback period Suppose you are evaluating a project with the cash inflows...
7. The NPV and payback period Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. The project's annual cash flows are: Year Cash Flow Year 1 $350,000 Year 2 600,000 Year 3 600,000 Year 4 450,000 If the project’s desired...
Suppose you are evaluating a project with the cash inflows shown in the following table. Your...
Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. The project's annual cash flows are: Year Cash Flow Year 1 $375,000 Year 2 550,000 Year 3 400,000 Year 4 300,000 If the project’s desired rate of return is 9.00%, the...
You are considering a project which will provide annual cash inflows of $5,832, $5,792, and $6,106...
You are considering a project which will provide annual cash inflows of $5,832, $5,792, and $6,106 at the end of each year for the next three years, respectively. What is the net present value of the project, given an initial investment of $15,751 and a 6 percent discount rate.?
You are considering a project which will provide annual cash inflows of $4,289, $5,305, and $5,851...
You are considering a project which will provide annual cash inflows of $4,289, $5,305, and $5,851 at the end of each year for the next three years, respectively. What is the net present value of the project, given an initial investment of $15,714 and a 6 percent discount rate.
You are considering a project which will provide annual cash inflows of $4,028, $5,261, and $6,887...
You are considering a project which will provide annual cash inflows of $4,028, $5,261, and $6,887 at the end of each year for the next three years, respectively. What is the net present value of the project, given an initial investment of $13,779 and a 6 percent discount rate.?
Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 1. . . ....
Annual Net Cash Inflows Year Toy action Sandbox toy figure project project 1. . . . . . . . . . . . . $343,000 $550,000 2. . . . . . . . . . . . . 343,000 370,000 3. . . . . . . . . . . . . 343,000 320,000 4. . . . . . . . . . . . . 343,000 250,000 5. . . . . . . ....
an investment project has annual cash inflows of 4,800,5,900,6,700 and 8,000 for the next four years...
an investment project has annual cash inflows of 4,800,5,900,6,700 and 8,000 for the next four years respectively and a discount rate of 15 percent. what is the discounted payback period for these cash flows if the intiial cost is 8000