Homework Answers
Payback period = Year with last negative cumulative CF + (Cumulative CF / Next year actual CF)
PAyback period = 2 + (5398/8000)
Payback period = 2.67 years
Add Answer to:
Consider the accompanying project balance diagram for a typical investment project with a service life of...
Consider the accompanying project balance diagram for a typical investment project with a service life of...
Consider the accompanying project balance diagram for a typical investment project with a service life of five years. The numbers in the figure indicate the beginning project balances (a) From the project balance diagram, reconstruct the project's original cash flows. (b) What is the project's conventional payback period (without interest)? Assume that the cash flows occur continuously throughout the year. Click the icon to view the project balance diagram (a) Reconstruct the original cash flows of the project. (Round to...
Consider the following cash flow and project balance table: a) Complete the table by calculating i....
Consider the following cash flow and project balance table:
a) Complete the table by calculating i.
b) What is the undiscounted payback period?
c) What is the discounted payback period?
d) What is the NPV at i ?
e) What is the Internal Rate of Return (IRR)?
n 0 1 2 3 An -$10,000 ? ? | 8,000 ? PB(i)n $10,000 -11,000 -8,200 -1,840 3,792 7,550 5
Consider the investment project in the table below with four-year investment life n Project Cash Flow...
Consider the investment project in the table below with four-year investment life n Project Cash Flow ($) 0 -$ 3,500 1 $ 1,600 2 $ 2,800 3 $ 3,500 4 $ 2,200 What is the payback period? (5 points) (show all your work). What is the discounted payback period if the firm’s interest rate is 15% after taxes? (9 points) (show all your work).
please help!! 10. The payback period The payback method helps firms establish and identify a maximum...
please help!!
10. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in capital budgeting decisions. There are two versions of the payback method: the conventional payback method and the discounted payback method. Consider the following case: Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash...
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 investment for new...
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $320,000 investment for new machinery with a four-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA...
udicates problems in Excel Study Problems All Study Problems are available in MyLab Finance. The X...
udicates problems in Excel Study Problems All Study Problems are available in MyLab Finance. The X icon indicates problems Mylab format available in MyLab Finance. LO2 10-1. (Payback Period) What is the payback period for the following set of cash flowe YEAR CASH FLOWS --- $11,300 3,400 4,300 3,600 4,500 3,500 x 10-2. (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a single free cash flow of $17,182 after 8 years...
1. Tim Smith is shopping for a used luxury car. He has found one priced at...
1. Tim Smith is shopping for a used luxury car. He has found one priced at $36,000. The dealer has told Tim that if he can come up with a down payment of $5,500, the dealer will finance the balance of the price at a 8% annual rate over 2 years (24 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.) a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month)...
1. Mike has just been asked to analyze an investment project to determine if it is...
1. Mike has just been asked to analyze an investment project to determine if it is acceptable. He notices that the project has cash flows as below. Apart from the initial investment of $1000, this project requires a major maintenance and additional investment in Year 3. Consequently, a net investment of $100 will be put into the project in Year 3. 0 Year 1 Year 2 Year 3 Year 4 -1000 300 400 -100 500 Mike has tried to use...
Hello, Looking for help on the balance sheet and statement of cash flows. 1. Financial Statements:...
Hello, Looking for help on the balance sheet and statement of
cash flows.
1. Financial Statements: Develop an Income Statement for 20XX, Cash Flow Statement for 20XX, and Balance Sheet as of the end of 20XX based on the data provided below for year 20XX. All sales are collected when the sale is made and all expenses are paid when the expense is incurred. Explain the purpose of each financial statement. a. Income Statement Data for 20XX: Units produced and...
QUESTION 1 (15 MARKS) Jeanne is attempting to evaluate two possible portfolios consisting of the same...
QUESTION 1 (15 MARKS) Jeanne is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolio and, in this regard, has gathered the following data: Portfolio Weights (%) Asset Beta Portfolio Portfolio B 1.30 0.70 1.25 1.10 0.90 20 NO 10 10 40 Total 100 100 Required: a) Calculate the betas for portfolios A and B. marks) (CL01:PLO2:01) Compare...
Consider the accompanying project balance diagram for a typical investment project with a service life of five years. The numbers in the figure indicate the beginning project balances (a) From the project balance diagram, reconstruct the project's original cash flows. (b) What is the project's conventional payback period (without interest)? Assume that the cash flows occur continuously throughout the year. Click the icon to view the project balance diagram (a) Reconstruct the original cash flows of the project. (Round to...
Consider the following cash flow and project balance table:
a) Complete the table by calculating i.
b) What is the undiscounted payback period?
c) What is the discounted payback period?
d) What is the NPV at i ?
e) What is the Internal Rate of Return (IRR)?
n 0 1 2 3 An -$10,000 ? ? | 8,000 ? PB(i)n $10,000 -11,000 -8,200 -1,840 3,792 7,550 5
please help!!
10. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in capital budgeting decisions. There are two versions of the payback method: the conventional payback method and the discounted payback method. Consider the following case: Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash...
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $320,000 investment for new machinery with a four-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA...
udicates problems in Excel Study Problems All Study Problems are available in MyLab Finance. The X icon indicates problems Mylab format available in MyLab Finance. LO2 10-1. (Payback Period) What is the payback period for the following set of cash flowe YEAR CASH FLOWS --- $11,300 3,400 4,300 3,600 4,500 3,500 x 10-2. (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a single free cash flow of $17,182 after 8 years...
1. Mike has just been asked to analyze an investment project to determine if it is acceptable. He notices that the project has cash flows as below. Apart from the initial investment of $1000, this project requires a major maintenance and additional investment in Year 3. Consequently, a net investment of $100 will be put into the project in Year 3. 0 Year 1 Year 2 Year 3 Year 4 -1000 300 400 -100 500 Mike has tried to use...
Hello, Looking for help on the balance sheet and statement of
cash flows.
1. Financial Statements: Develop an Income Statement for 20XX, Cash Flow Statement for 20XX, and Balance Sheet as of the end of 20XX based on the data provided below for year 20XX. All sales are collected when the sale is made and all expenses are paid when the expense is incurred. Explain the purpose of each financial statement. a. Income Statement Data for 20XX: Units produced and...
QUESTION 1 (15 MARKS) Jeanne is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolio and, in this regard, has gathered the following data: Portfolio Weights (%) Asset Beta Portfolio Portfolio B 1.30 0.70 1.25 1.10 0.90 20 NO 10 10 40 Total 100 100 Required: a) Calculate the betas for portfolios A and B. marks) (CL01:PLO2:01) Compare...
Most questions answered within 3 hours.
-
Please use Barney's VRIO framework of analysis to evaluate a
firm's competencies. Please choose a specific...
asked 9 minutes ago -
Where would you expect to have diabetes contributing to the most
DALYs in 2035, according to...
asked 10 minutes ago -
1.) Major league baseball salaries averaged $1.5 million with a
standard deviation of $1 million in...
asked 19 minutes ago -
A hedge fund is holding a three-year,
$10 million face value 6 percent annual coupon bond...
asked 31 minutes ago -
The focal length of a makeup (concave) mirror is 0.48 m. What
magnification does this mirror...
asked 35 minutes ago -
TRUE/FALSE
Long-lived assets that are tangible in nature, used in the
operations of the business, and...
asked 36 minutes ago -
A dragon biologist is setting up an experimental population of
1000 individuals. In dragons, pointy crests...
asked 47 minutes ago -
A uniform thin rod of length 0.851 m is hung from a horizontal
nail passing through...
asked 56 minutes ago -
A 747 has a cruising speed of 235 m/s at a height of 10,700
meters. The...
asked 1 hour ago -
Part 3: Arrows
Write a python program that prompts the user for a number of
columns,...
asked 1 hour ago -
Need help answering these questions!!
1. What economic concept do you find most interesting in
Macroeconomics?...
asked 1 hour ago -
1. Nimbus, Inc. produces and sells brooms. This table shows the
relationship between the number of...
asked 1 hour ago