Question

Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years, and...

Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Round your answer to two decimal places.

_____ years

Homework Answers

Answer #1
Year Cash flows Present value@10% Cumulative Cash flows
0 (30000) (30000) (30000)
1 8000 7272.73 (22727.27)
2 8000 6611.57 (16115.7)
3 8000 6010.52 (10105.18)
4 8000 5464.11 (4641.07)
5 8000 4967.37 326.3
6 8000 4515.79 4842.09
7 8000 4105.26 8947.35
8 8000 3732.06 12679.41(Approx).

Hence discounted Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).

=4+(4641.07/4967.37)

=4.93 years(Approx).

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
DISCOUNTED PAYBACK Project L costs $30,000, its expected cash inflows are $8,000 per year for 8...
DISCOUNTED PAYBACK Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Round your answer to two decimal places.   years
5. Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years,...
5. Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places. years
Project L costs $65,000, its expected cash inflows are $15,000 per year for 8 years, and...
Project L costs $65,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places.   years
Project L costs $50,000, its expected cash inflows are $12,000 per year for 8 years, and...
Project L costs $50,000, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 12%. What is the project's discounted payback? Round your answer to two decimal places.
Project L costs $65,000, its expected cash inflows are $15,000 per year for 8 years, and...
Project L costs $65,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places. _____Years
Project L costs $70,000, its expected cash inflows are $8,000 per year for 8 years, and...
Project L costs $70,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 10%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
Project L costs $60,000, its expected cash inflows are $8,000 per year for 8 years, and...
Project L costs $60,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 11%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations
Project L costs $50,000, its expected cash inflows are $8,000 per year for 8 years, and...
Project L costs $50,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 9%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations.
Project L costs $40,000, it's expected cash inflows are $9000 per year for 8 years, and...
Project L costs $40,000, it's expected cash inflows are $9000 per year for 8 years, and its WACC is 11%. What is the project's discounted payback? Round your answer to two decimal places.
a. Project L costs $42,220.68, its expected cash inflows are $9,000 per year for 11 years,...
a. Project L costs $42,220.68, its expected cash inflows are $9,000 per year for 11 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places. b.Project L costs $45,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 14%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. c. Project L costs $70,000, its expected cash inflows...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT