Question

Determine the payback period in years for a project that costs $65,000 and would yield after-tax...

Determine the payback period in years for a project that costs $65,000 and would yield after-tax cash flows of $13,000 the first year, $15,000 the second year, $18,000 the third year, $20,000 the fourth year, $24,000 the fifth year, and $30,000 the sixth year. Question 7 options: 3.95 3.33 3.73 3.20 4.16

Determine the internal rate of return for a project that costs $298,000 and would yield after-tax cash flows of $28,000 per year for the first 5 years, $36,000 per year for the next 5 years, and $49,000 per year for the following 5 years.

Question 5 options:

8.11%

6.84%

7.65%

6.58%

8.54%
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

For Q 5 there should you should give the present value percentage and their value

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
1. Determine the payback period in years for a project that costs $42,000 and would yield...
1. Determine the payback period in years for a project that costs $42,000 and would yield after-tax cash flows of $7,000 the first year, $9,000 the second year, $12,000 the third year, $14,000 the fourth year, $18,000 the fifth year, and $24,000 the sixth year. 2. You are evaluating a potential investment in equipment. The equipment's basic price is $126,000, and shipping costs will be $3,800. It will cost another $18,900 to modify it for special use by your firm,...
Determine the internal rate of return for a project that costs -$71,500 and would yield after-tax...
Determine the internal rate of return for a project that costs -$71,500 and would yield after-tax cash flows of $11,000 the first year, $13,000 the second year, $16,000 the third year, $18,000 the fourth year, $22,000 the fifth year, and $28,000 the sixth year.
Determine the net present value for a project that costs $104,000 and would yield after-tax cash...
Determine the net present value for a project that costs $104,000 and would yield after-tax cash flows of $16,000 the first year, $18,000 the second year, $21,000 the third year, $23,000 the fourth year, $27,000 the fifth year, and $33,000 the sixth year. Your firm's cost of capital is 12.00%.   ***without use of financial calculator***
Determine the net present value for a project that costs $253,494.00 and is expected to yield...
Determine the net present value for a project that costs $253,494.00 and is expected to yield after-tax cash flows of $29,000 per year for the first ten years, $37,000 per year for the next ten years, and $50,000 per year for the following ten years. Your firm's cost of capital is 12.00%. ***WITHOUT USE OF FINANCE CALCULATOR***
Payback Period Each of the following scenarios is independent. Assume that all cash flows are after-tax...
Payback Period Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Colby Hepworth has just invested $500,000 in a book and video store. She expects to receive a cash income of $120,000 per year from the investment. Kylie Sorensen has just invested $1,620,000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: $350,000, $490,000, $810,000, $500,000, and $310,000. Carsen Nabors invested in a project...
Red Royal Food is considering a project that would last for 2 years. The project would...
Red Royal Food is considering a project that would last for 2 years. The project would involve an initial investment of 134,000 dollars for new equipment that would be sold for an expected price of 116,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 20,000 dollars over 6 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 115,000 dollars per year and...
What is the payback period for Tangshan Mining company's new project if its initial after-tax cost...
What is the payback period for Tangshan Mining company's new project if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3, and $1,800,000 in year 4? Select one: a. 1.33 years b. 2.33 years c. 4.33 years d. 3.33 years Which of the following is TRUE? Select one: a. The Gordon model assumes that the value of a share of...
A firm is considering a project that costs $165,000 to start and generates $28,000/year in after-tax...
A firm is considering a project that costs $165,000 to start and generates $28,000/year in after-tax cash for the next 8 years. After 8 years there are no additional cash flows or salvage value. The firm uses a 15% cost of capital. Build a spreadsheet model to estimate the net present value of the project.
An investment project generates after-tax cash flows of $5,000 per year for the next 10 years....
An investment project generates after-tax cash flows of $5,000 per year for the next 10 years. Suppose the payback period for the project is 5 years and the appropriate discount rate is 15 percent. What is the initial cost of the project? a. $25,000 b. $32,167 c. $30,000 d. $16,761 Please provide the formula you used and numbers you plugged in to get the answer.
CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS Project S costs $17,000, and its expected cash flows would...
CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS Project S costs $17,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L costs $30,000, and its expected cash flows would be $8,750 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Explain. Which project would you recommend? Explain.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT