Question

James Construction Co. is considering a new inventory system that will cost $1,050,000. The system is...

James Construction Co. is considering a new inventory system that will cost $1,050,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $350,000 in year two, $150,000 in year three, and $250,000 in year four. The required rate of return is 8%. What is the Payback Period of this project?

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
James Construction Co. is considering a new inventory system that will cost $950,000. The system is...
James Construction Co. is considering a new inventory system that will cost $950,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $350,000 in year two, $150,000 in year three, and $250,000 in year four. The required rate of return is 8%. What is the payback period of this project? A) 4.00 years B) 3.56 years C) 3.40 years D) 3.31 years C is the correct answer,...
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is...
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the modified internal rate of return of this project?
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is...
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the internal rate of return of this project?
You are considering a new project that will cost $750,000. The project is expected to generate...
You are considering a new project that will cost $750,000. The project is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $250,000 in year three, and $280,000 in year four. Your required rate of return is 8%. What is the discounted payback period of the project?
A company is considering a new project that will cost $750,000. The project is expected to...
A company is considering a new project that will cost $750,000. The project is expected to generate positive cash flows over the next four years in the amounts of $300,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. The required rate of return is 8%. What is the project’s payback period? 2.60 years 2.83 years 2.63 years 2.33 years 2.50 years
Question 47 A company is considering a new inventory system that will cost $120,000. The system...
Question 47 A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4. The firm’s required rate of return is 9%. What is the payback period of this project? a. 1.95 years b. 2.46 years c. 2.99 years d. 3.10 years Question 48 Based...
Alicia is considering adding toys to her gift shop. She estimates that the cost of inventory...
Alicia is considering adding toys to her gift shop. She estimates that the cost of inventory will be $7,500. The remodeling expenses and shelving costs are estimated at $1,500. Toy sales are expected to produce net cash inflows of $2,800, $2,900, $3,400, and $3,500 over the next four years, respectively. Should Alicia add toys to her store if she assigns a three-year payback period to this project? Why or why not? A. No; The payback period is 3.26 years. B....
A company is considering a project that has an up-front cost paid today at t =...
A company is considering a project that has an up-front cost paid today at t = 0. The project will generate positive cash flows of $56,187 a year at the end of each for the next 5 years. The project’s NPV is $95,484 and the company’s return on the project is 8.4 percent. What is the project’s payback?
A company is considering a project that has an up-front cost paid today at t =...
A company is considering a project that has an up-front cost paid today at t = 0. The project will generate positive cash flows of $52,785 a year at the end of each for the next 6 years. The project’s NPV is $82,504 and the company’s return on the project is 8.9 percent. What is the project’s payback?
The Callaway Cattle Company is considering the construction of a new feed handling system for its...
The Callaway Cattle Company is considering the construction of a new feed handling system for its feed lot in​Abilene, Kansas. The new system will provide annual labor savings and reduced waste totaling $190,000 while the initial investment is only ​$485,000. Callaway's management has used a simple payback method for evaluating new investments in the past but plans to calculate the discounted payback to analyze the investment. Where the appropriate discount rate for this type of project is 12 ​percent, what...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT