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For project y, if you sum up all cashflows from year 0 to year 2 you get 0 (-1600+0+1600); hence you get payback by end of year 2. The same is not true for other projects; Hence answer is option b
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t lll the market. Table I: Net cash flows for three projects Year Projeet X -8000...
on the market excceds the earning per share s used to calculate the number of times...
on the market excceds the earning per share s used to calculate the number of times the price being paid for on the market exceeds the dividend per share. s a measure of confidence in the ability of the company to maintain its earnings in future The P/E ratio represents a d. the value of a share of stock in the market oltiplier pplied to current earnings to determine Table I: Net cash flows for three Project Z Project X...
MULTIPLE CHOICES os the market exceeds the earning per share. s used to calculate the number...
MULTIPLE CHOICES
os the market exceeds the earning per share. s used to calculate the number of times the price being paid for on the market exceeds the dividend per share. The P/E ratio is a measure of confidence in the a is a measure of confidence in the ability of the company to maintain its earnings in futhure the value of a share of stock in the market a rets muiplier applied to current earnings to determine Table I:...
0 4800 8000 15. Given that you wish to use the payback rule with a cut-off...
0 4800 8000 15. Given that you wish to use the payback rule with a cut-off period of two years, which projects in Table 1 would you accept? a. Project X b. Project Y. c. Project Z. d. None of the above. 16. Which of the following statements is true regarding the payback rule? The payback rule states that a project should be accepted if its payback period is more than a specified cutoff period. The payback rule emphasizes cash...
Here are the expected cash flows for three projects: Project Year: IU 0 - 5,700 -...
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: Project Year: 2 0 - 5,300 -...
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...
Here are the expected cash flows for three projects: Project Year: 4 0 - 5,100 -...
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...
Here are the expected cash flows for three projects: Cash Flows (dollars) Project Year: 1 2...
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....
The cash flows associated with three independent projects (in millions) are as follows Net Cash Flows Proiect Alpha Project Beta Proiect Gamma Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 $1,500,000...
The cash flows associated with three independent projects (in millions) are as follows Net Cash Flows Proiect Alpha Project Beta Proiect Gamma Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 $1,500,000 $300,000 S500,000 S500,000 $400,000 $300,000 $400,000 $100,000 S200,000 $200,000 $100,000 S200,000 $7,500,000 $2,000,000 S3,000,000 S2,000,000 S1,500,000 $5,500,000 a) Calculate the payback period of each investment b) Which investments does the company accept if the cut-off payback period is three years? What if the cut-off is...
29. Payback and NPV. Here are the expected cash flows for three projects: (108-4) Pipject Year:...
29. Payback and NPV. Here are the expected cash flows for three projects: (108-4) Pipject Year: 4 0 -5,000 - 1.000 -5.000 Cash Flows (dollars) 1 2 3 +1,000 +1,000 +3,000 0 +1,000 +2.000 +1,000 +1,000 +3,000 +3,000 +5.000 a. What is the payback period on each of the projects? b. Given that you wish to use the payback rule with a cutoff period of 2 years, which projects would you accept?
Here are the expected cash flows for three projects: Cash Flows (dollars) Project Year: 1 2...
Here are the expected cash flows for three projects: Cash Flows (dollars) Project Year: 1 2 4 -5,300 -1,300 -5,300 +1,075 +1,075 +1,300 +1,075 +3,150 +2,150 +3,150 0 +3,150 +5,150 +1,075 a. What is the payback period on each of the projects? Project Payback Period years A В years C years AB C b. If you use a cutoff period of 2 years, which projects would you accept? O Project A O Project B O Project C O Project A...
on the market excceds the earning per share s used to calculate the number of times the price being paid for on the market exceeds the dividend per share. s a measure of confidence in the ability of the company to maintain its earnings in future The P/E ratio represents a d. the value of a share of stock in the market oltiplier pplied to current earnings to determine Table I: Net cash flows for three Project Z Project X...
MULTIPLE CHOICES
os the market exceeds the earning per share. s used to calculate the number of times the price being paid for on the market exceeds the dividend per share. The P/E ratio is a measure of confidence in the a is a measure of confidence in the ability of the company to maintain its earnings in futhure the value of a share of stock in the market a rets muiplier applied to current earnings to determine Table I:...
0 4800 8000 15. Given that you wish to use the payback rule with a cut-off period of two years, which projects in Table 1 would you accept? a. Project X b. Project Y. c. Project Z. d. None of the above. 16. Which of the following statements is true regarding the payback rule? The payback rule states that a project should be accepted if its payback period is more than a specified cutoff period. The payback rule emphasizes cash...
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: 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...
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...
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....
The cash flows associated with three independent projects (in millions) are as follows Net Cash Flows Proiect Alpha Project Beta Proiect Gamma Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 $1,500,000 $300,000 S500,000 S500,000 $400,000 $300,000 $400,000 $100,000 S200,000 $200,000 $100,000 S200,000 $7,500,000 $2,000,000 S3,000,000 S2,000,000 S1,500,000 $5,500,000 a) Calculate the payback period of each investment b) Which investments does the company accept if the cut-off payback period is three years? What if the cut-off is...
29. Payback and NPV. Here are the expected cash flows for three projects: (108-4) Pipject Year: 4 0 -5,000 - 1.000 -5.000 Cash Flows (dollars) 1 2 3 +1,000 +1,000 +3,000 0 +1,000 +2.000 +1,000 +1,000 +3,000 +3,000 +5.000 a. What is the payback period on each of the projects? b. Given that you wish to use the payback rule with a cutoff period of 2 years, which projects would you accept?
Here are the expected cash flows for three projects: Cash Flows (dollars) Project Year: 1 2 4 -5,300 -1,300 -5,300 +1,075 +1,075 +1,300 +1,075 +3,150 +2,150 +3,150 0 +3,150 +5,150 +1,075 a. What is the payback period on each of the projects? Project Payback Period years A В years C years AB C b. If you use a cutoff period of 2 years, which projects would you accept? O Project A O Project B O Project C O Project A...
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