Question

im evaluating a project that will cost 500,000, but is expected to produce cash flows of...

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?

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
You are evaluating a project that will cost $ 456 comma 000​, but is expected to...
You are evaluating a project that will cost $ 456 comma 000​, but is expected to produce cash flows of $ 124 comma 000 per year for 10 ​years, with the first cash flow in one year. Your cost of capital is 11.2 % and your​ company's preferred payback period is three years or less. a. What is the payback period of this​ project?
1.-You are evaluating a project that will cost $499,000​, but is expected to produce cash flows...
1.-You are evaluating a project that will cost $499,000​, but is expected to produce cash flows of $123,000 per year for 10 ​years, with the first cash flow in one year. Your cost of capital is 10.6% and your​ company's preferred payback period is three years or less. a. What is the payback period of this​ project? b. Should you take the project if you want to increase the value of the​ company? 2.- You are choosing between two projects....
You are evaluating a project that will cost $ 515, 000 ​, but is expected to...
You are evaluating a project that will cost $ 515, 000 ​, but is expected to produce cash flows of $ 122 comma 000 per year for 10 ​years, with the first cash flow in one year. Your cost of capital is 11.1 % and your​ company's preferred payback period is three years or less. a. What is the payback period of this​ project? b. Should you take the project if you want to increase the value of the​ company?...
Project S costs $16,000 and is expected to produce cash flows of $5,000 per year for...
Project S costs $16,000 and is expected to produce cash flows of $5,000 per year for 6 years. What is the discounted payback period for this project if the cost of capital is 21%? A) 3.92 years B) 5.61 years C) 4.86 years D) 5.85 years
Suppose Extensive Enterprises’s CFO is evaluating a project with the following cash inflows. She does not...
Suppose Extensive Enterprises’s CFO is evaluating a project with the following cash inflows. She does not know the project’s initial cost; however, she does know that the project’s regular payback period is 2.5 years. Year Cash Flow Year 1 $275,000 Year 2 $450,000 Year 3 $500,000 Year 4 $400,000 If the project’s weighted average cost of capital (WACC) is 9%, what is its NPV? A. $260,409 B. $390,613 C. $325,511 D. $309,235 Which of the following statements indicate a disadvantage...
Stone Inc. is evaluating a project with an initial cost of $11,500. Cash inflows are expected...
Stone Inc. is evaluating a project with an initial cost of $11,500. Cash inflows are expected to be $1,500, $1,500 and $13,000 in the three years over which the project will produce cash flows. If the discount rate is 11%, what is the payback, net present value and profitability index of the project?
Suppose Acme Manufacturing Corporation’s CFO is evaluating a project with the following cash inflows. She does...
Suppose Acme Manufacturing Corporation’s CFO is evaluating a project with the following cash inflows. She does not know the project’s initial cost; however, she does know that the project’s regular payback period is 2.5 years. Year Cash Flow 1 $325,000 2 $475,000 3 $500,000 4 $475,000 1. If the project’s weighted average cost of capital (WACC) is 9%, what is its NPV? $314,973 $426,141 $389,085 $370,557 2. Which of the following statements indicate a disadvantage of using the discounted payback...
Middlefield Motors is evaluating a project that would cost 6,200 dollars today. The project is expected...
Middlefield Motors is evaluating a project that would cost 6,200 dollars today. The project is expected to have the following other cash flows: 2,350 dollars in 1 year, -2,480 dollars in 3 years, and 7,540 dollars in 4 years. The cost of capital of the project is 5.64 percent. What is the net present value of the project? They are also evaluating a project that would cost 4,360 dollars today. The project is expected to produce annual cash flows of...
Gio's Restaurants is considering a project with the following expected cash? flows: Year Project Cash Flow?...
Gio's Restaurants is considering a project with the following expected cash? flows: Year Project Cash Flow? (millions) 0 ?$(210?) 1 100 2 72 3 100 4 90 If the? project's appropriate discount rate is 11percent, what is the? project's discounted payback? period? The? project's discounted payback period is ____ years? Round to 2 decimal places
coughlin motors is considering a project with the following expected cash flows. Year Cash flow 0...
coughlin motors is considering a project with the following expected cash flows. Year Cash flow 0 (700) 1 200 2 370 3 225 4 700 The project's cost of capital is 10%. What is the project's discounted payback?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT