Question

A 10-year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-10. The company's required rate is 8% c.m. Given this information, calculate the discounted payback of the project?

Answer #1

CF0 = ($5,00,000)

CF1= $1,00,000

CF2= $1,00,000

CF3= $1,00,000

CF4= $1,00,000

CF5= $1,00,000

CF6 = $1,00,000

CF7 = $1,00,000

Discounted cash flows

Year 1 : $92,592.5926

Year 2: $85,733.8820

Year 3 : $79,383.2241

Year 4 : $73,502.9853

Year 5: $68,058.3197

Year 6: $63,016.9627

$462287.9664 ( Cumulative amount till Year 6)

CF7 = $58,349.0395

So, the discounted payback period is :

= 6 + (5,00,000 - $462287.9664) / $58,349.0395

= 6 + 0.6463

= 6.65 Years ( rounded off to two decimal places)

A 50-year project has a cost of $500,000 and has annual cash
flows of $100,000 in years 1-25, and $200,000 in years 26-50. The
company's required rate is 8%. Given this information, calculate
the payback of the project.

Moon Enterprises has a project which has the following cash
flows:
Year
Cash Flow
0
-$500,000
1
150,000
2
200,000
3
350,000
4
140,000
5
225,000
The cost of capital is 14 percent. What is the project's
discounted payback?
Question 5 options:
3.10 years
2.53 years
2.91 years
2.18 years
2.64 years

im evaluating a project that will cost 500,000, but is expected
to produce cash flows of 175,000 per year for 10yrs, with the first
cash flow in one year. cost of capital is 11%. what is the
discounted payback period of this project?

A project has the following total (or net) cash flows.
________________________________________
Year Total (or net)
cash flow
________________________________________
1 $50,000
2 70,000
3 80,000
4 100,000
_______________________________________
The required rate of return on the project is 13 percent. The
initial investment (or initial cost or initial outlay) of the
project is $100,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.

A project has the following total (or net) cash flows.
________________________________________
Year Total (or net)
cash flow
________________________________________
1 $50,000
2 70,000
3 80,000
4 100,000
_______________________________________
The required rate of return on the project is 13 percent. The
initial investment (or initial cost or initial outlay) of the
project is $100,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.

A project costs $500,000 upfront and has the following cash
flows: year 1. $100,000 year 2. $200,000 year 3. $300,000 year 4.
$450,000 year 5. $550,000 calculate the NPV using an 11% discount
rate. If this project is independent of other projects the company
is considering and the firm has enough funds, should this project
be accepted?

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 _______________
Seleccione una:
3.856 years
2.875 years
3.665 years
2.856 years
3.875 years
not enough data to answer

A project cost 5000 and will generate annual cash flows of 660
for 20 years. If the interest rate is 6%, what is the discounted
payback period? steps please

The
project has projected cash flows as follows. The cost of capital
(k) is 10% and the payback period is 2.8 years. Should the project
be accepted under the mirr decision method?
Year. Cash flow
0. -100,000
1. 40,000
2. ??
3. 50,000

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 _______________

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