Cash inflows | Cumulative Cash inflows | Payback Period | |||||
Year | Project A | Project B | Project A | Project B | |||
1 | 10000 | 40000 | 10000 | 40000 | |||
2 | 20000 | 30000 | 30000 | 70000 | |||
3 | 30000 | 20000 | 60000 | 90000 | |||
4 | 40000 | 10000 | 100000 | 100000 | Year 4 | ||
5 | 20000 | 20000 | 120000 | 120000 | |||
120000 | 120000 | ||||||
Initial Investment | 100000 | 100000 | |||||
Payback Period | Time at which cumulative cash flow equals initial investment |
Hope you understood.Thank you.
0 Data Table (Click on the icon located on the top-right corner of the data table...
Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $140,000. John Shell, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project. b. Because they are mutually exclusive, Shell must choose one. Which should the company invest in? a. The...
Choosing between two projects with acceptable payback periods Shol Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $180,000. John Shell, president of the company has set a maximum payback period of 4 years. The after tax cash inflows associated with each project are shown in the following table ! a. Determine the payback period of each project b. Because they are mutually exclusive Shell must choose one which should the company invest in?...
i Data Table (Click on the icon located on the top-right coner of the data table below in order to copy its contents into a spreadsheet.) Cash inflows (CF) Project A $45,000 Year Project B $75,000 $45,000 $45,000 $45,000 $45,000 $45,000 $60,000 $30,000 $30,000 $30,000 $30,000 2 3 4 6 N L LO HW Score: 79.38%, 15.88 of 20 pts Score: 0.1 of 1 pt 14 of 16 (15 complete) P10-21 (book/static) Question Help All techniques, conflicting rankings Nicholson Roofing...
Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $180,000. John Shell, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project. b. Because they are mutually exclusive, Shell must choose one. Which should the company invest in? a. The...
ch requires an intial Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc, is considering two mutually exclusive projects. E nvestment of $180,000. John Shell, president of the company, has set a maximum payback period of 4 years The after-tax cash inflows associated with each project are shown in the following table: BEB a. Determine the payback period of each project b. Because they are mutually exclusive, Shell must choose one. Which should the company invest in...
(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial investment (CFo) Year (t) $120,000 Cash inflows (CF) $35,000 $40,000 $40,000 $20,000 $20,000 4
4- Shell Camping Gear Inc. is considering two mutually exclusive projects. Each requires an initial investment (CF) of $100,000. John Shell, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table. Cash inflows (CF) Year Project A Project B 1 S10.000 S40.000 2 20.000 30.000 3 30.000 20.000 4 40.000 10.000 5 20.000 20.000 a. Determine the payback period of each project. b....
All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $160,000. The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 10%. The cash inflows associated with the two projects are shown in the following table: 0 Data Table a. Calculate the payback period for each project. Rank the projects by payback period. b. Calculate the NPV of each project. Rank...
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All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $100,000. The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 8%. The cash inflows associated with the two projects are shown in the following table(In the photo): a. Calculate the payback period for each project. Rank the projects by payback period. b. Calculate the NPV of each project. Rank the...