Question

Calculating Discounted Payback [LO3] An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The discount rate is 14 percent. What is the discounted payback period for these cash flows if the initial cost is $5,200? What if the initial cost is $5,400? What if it is $10,400?

Answer #1

Initial cost is $5,200?

Year | Cash Flow | PV factor | PV | Cumulative PV |

0 | -5200 | 1.0000 | -5,200.00 | -5,200.00 |

1 | 2800 | 0.8772 | 2,456.14 | -2,743.86 |

2 | 3700 | 0.7695 | 2,847.03 | 103.17 |

3 | 5100 | 0.6750 | 3,442.35 | 3,545.52 |

4 | 4300 | 0.5921 | 2,545.95 | 6,091.47 |

=+2743.86/2847.03+1

**=1.96 years**

initial cost is $5,400

Year | Cash Flow | PV factor | PV | Cumulative PV |

0 | -5400 | 1.0000 | -5,400.00 | -5,400.00 |

1 | 2800 | 0.8772 | 2,456.14 | -2,943.86 |

2 | 3700 | 0.7695 | 2,847.03 | -96.83 |

3 | 5100 | 0.6750 | 3,442.35 | 3,345.52 |

4 | 4300 | 0.5921 | 2,545.95 | 5,891.47 |

=+96.83/3345.52+2

**=2.03**

What if it is $10,400?

Year | Cash Flow | PV factor | PV | Cumulative PV |

0 | -10400 | 1.0000 | -10,400.00 | -10,400.00 |

1 | 2800 | 0.8772 | 2,456.14 | -7,943.86 |

2 | 3700 | 0.7695 | 2,847.03 | -5,096.83 |

3 | 5100 | 0.6750 | 3,442.35 | -1,654.48 |

4 | 4300 | 0.5921 | 2,545.95 | 891.47 |

=+1654.48/2545.95+3

**=3.65**

An investment project has annual cash inflows of $5,100, $3,200,
$4,400, and $3,600, for the next four years, respectively. The
discount rate is 15 percent.
a. What is the discounted payback period for these cash flows if
the initial cost is $5,000?
b. What is the discounted payback period for these cash flows if
the initial cost is $7,100?
c. What is the discounted payback period for these cash flows if
the initial cost is $10,100?

An investment project has annual cash inflows of $5,000, $3,300,
$4,500, and $3,700, for the next four years, respectively. The
discount rate is 14 percent.
1.What is the discounted payback period for these cash flows if
the initial cost is $5,100? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Discounted payback
period
years
2.What is the discounted payback period for these cash flows if
the initial cost is $7,200? (Do...

Calculating Discounted Payback- An investment project has annual
cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount
rate of 11 percent. What is the discounted payback period for these
cash flows if the initial cost is $8,000? What if the initial cost
is $12,000? What if it is $16,000?

An investment project has annual cash inflows of $6,100, $7,200,
$8,000 for the next four years, respectively, and $9,300, and a
discount rate of 17 percent. What is the discounted payback period
for these cash flows if the initial cost is $9,500?

An investment project has annual cash inflows of $4,400, $5,500,
$6,300 for the next four years, respectively, and $7,600, and a
discount rate of 11 percent. What is the discounted payback period
for these cash flows if the initial cost is $7,500?

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

An investment project has annual cash inflows of $3,200, $4,100,
$5,300, and $4,500, and a discount rate of 14 percent. What is the
discounted payback period for these cash flows if the initial cost
is $5,900?

An investment project has annual cash inflows of $4,606, $3,114,
$4,568, and $3,821 for the next four years, respectively, and a
discount rate of 14%.
What is the discounted payback if the initial investment is
$5,500? (Round answer to 2 decimal places. Do not round
intermediate calculations)

An investment project has annual cash inflows of $4,953, $3,527,
$4,866, and $3,966 for the next four years, respectively, and a
discount rate of 15%.
What is the discounted payback if the initial investment is
$5,500?

An investment project has annual cash inflows of $5,400, $6,000,
$7,300, and $8,600, and a discount rate of 10 percent. What is the
discounted payback period for these cash flows if the initial cost
is $9,000? options: 2.02 years 2.51 years 1.66 years 1.83 years
1.95 years
A project that provides annual cash flows of $16,000 for 9 years
costs $85,824 today. Assuming a discount rate of 13%, What is the
NPV of this project? options: -3,850.33 1,872.49 2,825.92 4,291.68)...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 16 minutes ago

asked 52 minutes ago

asked 52 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago