Question

Homework Chapter 13 Help Save & Exit Submit Check my work 00 Compute the discounted payback statistic for Project Dif the app
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Cash flows in the given year are:
Year 0:-12900
Year 1:3540
Year 2:4560
Year 3:1900
Year 4:0
Year 5:1380
Given that the cost of capital=10%

Discounted cash flows:
Year 0:-12900/(1+10%)^0=-12900
Year 1:3540/(1+10%)^1=3218.181818
Year 2:4560/(1+10%)^2=3768.595041
Year 3:1900/(1+10%)^3=1427.498122
Year 4:0/(1+10%)^4=0
Year 5:1380/(1+10%)^5=856.8714258

Cumulative net cash flows:
Year 0:-12900
Year 1:3218.181818-12900=-9681.818182
Year 2:3768.595041-9681.818182=-5913.223141
Year 3:1427.498122-5913.223141=-4485.725019
Year 4:0-4485.725019=-4485.725019
Year 5:856.8714258-4485.725019=-3628.853593

We see that the project does not pay back. As given in the question, we need to enter 0 (in the box) if the project does not pay back.

Answer: Discounted payback period = 0 Years

Add a comment
Know the answer?
Add Answer to:
Homework Chapter 13 Help Save & Exit Submit Check my work 00 Compute the discounted payback...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Week 4 Homework Assignment Saved Help Save & Exit Submit Check my work Compute the IRR...

    Week 4 Homework Assignment Saved Help Save & Exit Submit Check my work Compute the IRR statistic for Project E. The appropriate cost of capital is 9 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 2.16 points Project E Time: Cash flow 0 -$1,500 1 $550 2 $630 3 $620 4 $400 5 $200 eBook IRR % Print References Week 4 Homework Assignment A Saved Help Save & Exit Submit Check my work...

  • Homework Chapter 13 Help Save & Exit Submit Check my work Compute the NPV statistic for...

    Homework Chapter 13 Help Save & Exit Submit Check my work Compute the NPV statistic for Project if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Project TIR Cash tlovi -$1,500 $550 $1,980 -5620 $500 $200 2 NPV References

  • Homework Chapter 13 Help Save & Exit Submit Check my work Compute the NPV for Project Kif the appropriate cost...

    Homework Chapter 13 Help Save & Exit Submit Check my work Compute the NPV for Project Kif the appropriate cost of capital is 6 percent. (Negative amount should be indicated by a minus sign. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Project Time Cash flow -$10,900 $5,450 $6,450 $6,450 $5,450-510,900 NPV

  • Save Help Save & Exit Submit Check my work Suppose your firm is considering investing in...

    Save Help Save & Exit Submit Check my work Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time! 1 2 Cash flow: -$6,500 $1,020 $2,220 $1,420 $1,420 $1,220 $1 Use the IRR decision rule to evaluate this project. (Negative...

  • lomework Chapter 13 Help Save & Exit Submit Check my work Compute the IRR static for...

    lomework Chapter 13 Help Save & Exit Submit Check my work Compute the IRR static for Project E. The appropriate cost of capital is 7 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 1.5 points Projects Tinet Cash flow $2,800 $870 $870 $780 $560 $360 2 04:33:28 IRR References

  • Compute the discounted payback statistic for Project D if the appropriate cost of capital is 13...

    Compute the discounted payback statistic for Project D if the appropriate cost of capital is 13 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "O" (zero).) Project D Time: 2 4 Cash flow:-$11,500 $3,400 $4,280 $1,620 $0 $1,100 Discounted payback period years Should the project be accepted or rejected? O accepted O rejected

  • Homework Chapter 13 6 Help Save & Exit Subm Check my work Compute the NPV for...

    Homework Chapter 13 6 Help Save & Exit Subm Check my work Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative amount should we indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) points Project M Time: Cash flow 0 -$2,100 1 $570 2 5700 3 5740 4 5020 5 $320 04:16:11 Skipped NPV

  • Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11...

    Compute the discounted payback statistic for Project D if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).) Project D Time: 0 1 2 3 4 5 Cash flow: –$12,700 $3,520 $4,520 $1,860 $0 $1,340 Discounted Payback Statistic:

  • Compute the discounted payback statistic for Project if the appropriate cost of capital is 8 percent...

    Compute the discounted payback statistic for Project if the appropriate cost of capital is 8 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project t Timet Cash flow: -51,600 $720 $660 Discounted payback period Should the project be accepted or rejected accepted rejected

  • Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12...

    Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "O" (zero).) Project D Time: Cash flow: 0 -$11,600 1 $3,410 $4,300 34 $1,640 $0 $1,120 Discounted payback period 0 years Should the project be accepted or rejected? accepted rejected...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT