Question

Year 0 1 2 3 4 5 6 Cash Flow -110000 30000 40000 20000 80000 20000...

Year

0

1

2

3

4

5

6

Cash Flow

-110000

30000

40000

20000

80000

20000

20000


Given the cash flows in the table above, calculate the payback period assuming the cash flows in years 1 to 4 occur evenly throughout the year. The required rate of return is 12%.

Answer in years accurate to two decimal places

Kindly please help to explain and answer.

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
YEAR CASH FLOWS 0 -50000 1 40000 2 40000 3 40000 4 -40000 5 40000 6...
YEAR CASH FLOWS 0 -50000 1 40000 2 40000 3 40000 4 -40000 5 40000 6 40000 ​(NPV calculation​) Calculate the NPV given the following free cash​ flows, above chart, if the appropriate required rate of return is 12 percent. Should the project be​ accepted? What is the​ project's NPV​?
Q. Consider the following table of cash flows years 0 1 2 3 4 5 6...
Q. Consider the following table of cash flows years 0 1 2 3 4 5 6 7 8 Interest 4.7% 4.3% 5.5% 5% 4.7% 9% 11% 5.6% 4% Cash flows -150000 18000 32000 34000 -22000 12000 5000 3500 8000 You are required to calculate 1.     Present value 2.     Future value 3.     Internal rate of return Cash flows occur at the end of the year
Year Cash Flow 0 -10000 1 3000 2 3000 3 3000 4 3000 Given the cash...
Year Cash Flow 0 -10000 1 3000 2 3000 3 3000 4 3000 Given the cash flows in the table​ above, the point at which the NPV profile crosses the vertical axis​ is:
QUESTION 1 Year Cash flow 0 -1075 1 350 2 450 3 375 4 300 A...
QUESTION 1 Year Cash flow 0 -1075 1 350 2 450 3 375 4 300 A firm is evaluating a potential capital expenditure project. The project will last for 4 years and has the above expected cash flows. The firm has a WACC of 15%. What is the project's NPV? If NPV is negative, enter the number with a minus sign. Use 2 decimal places Year Cash flow 0 -1075 1 350 2 450 3 375 4 300 The firm...
Factor Company is planning to add a new product to its line. To manufacture this product,...
Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $503,000 cost with an expected four-year life and a $11,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)...
Cash Flows Year Project A 0 -$100.00 1 $50.00 2 $60.00 3 $10.00 4 $3.00 WACC...
Cash Flows Year Project A 0 -$100.00 1 $50.00 2 $60.00 3 $10.00 4 $3.00 WACC = 10.00% Given the information in the table, what is project A's payback period? 2.02 years 1.83 years 2.00 years 1.67 years
What is the payback period for the following set of cash flows? Year Cash Flow 0...
What is the payback period for the following set of cash flows? Year Cash Flow 0 −$ 2,400        1 1,300        2 1,300        3 1,600        4 2,300        1.85 years 2.15 years 1.87 years 1.80 years 1.94 years
What is the payback period for the following set of cash flows? Year Cash flow 0...
What is the payback period for the following set of cash flows? Year Cash flow 0 -$40,000 (it is minus!) 1 $10,000 2    $5,000 3 $20,000 4    $5,000 5 $10,000 A. 2 years B. 4 years C. 3 years D. 1 year E. 5 years
Cash Payback Method (Even cash flows) Suppose that a particular investment required an up-front capital outlay...
Cash Payback Method (Even cash flows) Suppose that a particular investment required an up-front capital outlay of $100,000. This investment is expected to yield cash flows of $40,000 per year for 10 years. What is the payback period for this investment? If required, round your answer to two decimal places. Cash Payback Period = $ / $ =  years Payback Period (Uneven cash flows) When the annual cash flows are unequal, the payback period is computed by adding the annual cash...
23 There is a project with the following cash flows : Year Cash Flow 0 −$29,000...
23 There is a project with the following cash flows : Year Cash Flow 0 −$29,000 1 8,500 2 8,450 3 7,850 4 6,600 What is the payback period? Multiple Choice 3.93 years 3.64 years 4.00 years 2.46 years 3.86 years
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT