Year | Expected net cash flows |
0 | -90 |
1 | 60 |
2 | 40 |
3 | 20 |
The project's cost of capital is 10%.
What is the project's payback period?
A) 1.7 years
B) 1.2 years
C) 3 years
Year | Cash flows | Cumulative Cash flows |
0 | (90) | (90) |
1 | 60 | (30) |
2 | 40 | 10 |
3 | 20 | 30 |
Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).
=1+(30/40)
= 1.7 years(Approx).
Year Expected net cash flows 0 -90 1 60 2 40 3 20 The project's cost...
A project has an initial cost of $55,000, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 9%. What is the project's IRR? A project has an initial cost of $62,025, expected net cash inflows of $13,000 per year for 12 years, and a cost of capital of 10%. What is the project's MIRR? A project has an initial cost of $51,225, expected net cash inflows of $11,000 per year for 8...
1. A project has an initial cost of $59,925, expected net cash inflows of $14,000 per year for 6 years, and a cost of capital of 9%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. 2. A project has an initial cost of $56,300, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's payback period? Round your...
Here are the expected cash flows for three projects: Project Year: 2 0 - 5,300 - 1,300 - 5,300 Cash Flows (dollars) 1 + 1,075 + 1,075 + 3,150 0 + 1,300 + 2,150 + 1,075 + 1,075 + 3,150 0 + 3,150 + 5,150 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a...
A project has an initial cost of $42,200, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. A project has an initial cost of $56,300, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to...
1. A project has and initial cost of $52,000, expected net cash inflows of $11,000 per year for 7 years, and a cost of capital of 9%. a. What is the project's NPV? b. What is the project's IRR? c. What is the projects payback period?
Here are the expected cash flows for three projects: Project Year: IU 0 - 5,700 - 1,700 - 5,700 Cash Flows (dollars) 1 2 3 + 1,175 + 1,175 + 3,350 0 + 1,700 + 2,350 + 1,175 + 1,175 + 3,350 4 0 + 3,350 + 5,350 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If...
Here are the expected cash flows for three projects: Cash Flows (dollars) Project Year: 1 2 3 4 1,250 3,500 - 6,000 - 2,000 - 6,000 1,250 2,000 1,250 +3,500 5,500 2,500 1,250 3,500 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d-1....
You have the following information on a project's cash flows. Year Cash flows 0 -$111,000 1 24,000 2 31,000 3 36,000 4 50,000 5 55,000 The project's payback is ____ years. Round it to two decimal places.
You have the following information on a project's cash flows. Year Cash flows 0 -$108,000 1 33,000 2 33,000 3 38,000 4 92,000 5 55,000 The project's payback is ____ years. Round it to two decimal places. Your Answer:
Here are the expected cash flows for three projects: Project Year: 4 0 - 5,100 - 1,100 - 5,100 Cash Flows (dollars) 2 3 + 1,025 + 1,025 + 3,050 0 + 1,100 + 2,050 + 1,025 + 1,025 + 3,050 + 3,050 + 5,050 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a...