Question

Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the...

Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available.
Year Cash Flow A Cash Flow B
0 –$ 47,000 –$ 92,000     
1 18,000      20,000     
2 24,200      25,000     
3 20,000      34,000     
4 6,000      248,000     

What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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
Global Toys, Inc., imposes a payback cutoff of three years for its international investment projects. Assume...
Global Toys, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B 0 –$ 48,000 –$ 93,000 1 18,500 20,500 2 24,800 25,500 3 20,500 33,500 4 6,500 247,000 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period Project A years Project B years
Offshore Drilling Products, Inc., imposes a payback cutoff of three years for its international investment projects....
Offshore Drilling Products, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B 0 –$ 49,000      –$ 94,000      1 19,000      21,000      2 25,400      26,000      3 21,000      33,000      4 7,000      246,000      Requirement 1: What is the payback period for each project? (Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Round your answers to 2...
Offshore Drilling Products, Inc., imposes a payback cutoff of three years for its international investment projects....
Offshore Drilling Products, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B 0 –$ 49,000      –$ 94,000      1 19,000      21,000      2 25,400      26,000      3 21,000      33,000      4 7,000      246,000      Requirement 1: What is the payback period for each project? (Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Round your answers to 2...
Calculating Payback. Tulip Mania, Inc., imposes a payback cutoff of 3 years for its international investment...
Calculating Payback. Tulip Mania, Inc., imposes a payback cutoff of 3 years for its international investment projects. They are currently evaluating the following two projects: 1. Using the following table please find the payback period for project A, and for project B 2. What project should Tulip Mania accept. 3. Please show and explain the work using a finnancial calculator. Year Cashflow (A) Cashflow (B) 0 -70000 -100000 1 48000 10000 2 25000 25000 3 15000 40000 4 5000 100000            
Problem 8-21 NPV and Payback Period [LO 1, 4] Kaleb Konstruction, Inc., has the following mutually...
Problem 8-21 NPV and Payback Period [LO 1, 4] Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 12 percent. Year Project F Project G 0 –$ 141,000 –$ 211,000 1 57,000 37,000 2 53,000 52,000 3 63,000 93,000 4 58,000 123,000 5 53,000 138,000 Required: (a) Calculate the payback period for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal...
Calculating Payback Period and NPV - Fuji software, Inc., has the following mutually exclusive projects Year...
Calculating Payback Period and NPV - Fuji software, Inc., has the following mutually exclusive projects Year Project A Project B 0 -$15,000 -$18,000 1 9,500 10,500 2 6,000 7,000 3 2,400 6,000 a. Suppose Fuji’s payback period cutoff is two years. Which of these two projects should be chosen? b. Suppose Fuji uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?
Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a...
Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three year cutoff for projects. The required return is 10 percent. Year   Project F   Project G 0 $ 140,000     $ 210,000      1 57,500     37,500      2 52,500     52,500      3 62,500     92,500      4 57,500     122,500      5 52,500     137,500     a. Calculate the payback period for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$40,000...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$40,000       –$180,000       1 25,000       15,000       2 22,000       45,000       3 20,000       50,000       4 15,000       275,000       The required return on these investments is 11 percent. Required: (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period   Project A years     Project B years  ...
Payback period. What are the payback periods of projects E and​ F? Assume all the cash...
Payback period. What are the payback periods of projects E and​ F? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 ​years, which​ project(s) do you​accept? Cash Flow E F Cost 36,000   95,000 Cash flow year 1   9,000 9,500 Cash flow year 2   9,000   19,000 Cash flow year 3   9,000   28,500 Cash flow year 4   9,000   38,000 Cash flow year 5   9,000   0 Cash flow year 6   9,000   0
Consider the following two mutually exclusive projects:    Year Cash Flow (A) Cash Flow (B) 0...
Consider the following two mutually exclusive projects:    Year Cash Flow (A) Cash Flow (B) 0 –$ 341,000 –$ 51,000    1 54,000 24,900    2 74,000 22,900    3 74,000 20,400    4 449,000 15,500    Whichever project you choose, if any, you require a return of 15 percent on your investment.    a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)    a-2...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT