Given the following cash flows for a proposed capital investment project, calculate the payback period.
Year | Cash Flow |
0 | $-50,000 |
1 | 11,500 |
2 | 10,750 |
3 | 10,000 |
4 | 10,500 |
5 | 13,750 |
6 | 17,500 |
USING EXCEL
Given the following cash flows for a proposed capital investment project, calculate the payback period. Year...
Given a project with the following cash flows and a cost of capital of 9%. Calculate the NPV, IRR, MIRR, and PI. For each of the four calculations, give a brief interpretation of what it measures and how it should be used to evaluate a project. Should the project be accepted? Why or why not? Time Period Cash Flow 0 -$200,000 1 $50,000 2 $70,000 3 -$80,000 4 $75,000 5 $100,000 6 $120,000...
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Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 2.25 years 3.25 years 3.85 years 4.40 years None of these are correct.
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 Group of answer choices 2.25 years 3.85 years 3.25 years 4.40 years None of these are correct.
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 6,000 2 $ 5,000 3 $ 4,000 4 $ 3,000 5 $ 2,000 6 $ 1,000 Group of answer choices 2.25 years None of these are correct. 3.25 years 4.40 years 3.85 years
Consider the following table that shows expected annual cash flows from a proposed investment. Year Cash Flow 0 –$70 1 $20 2 $30 3 $30 4 $30 If the annual required return is 15%, what is the payback period of the project (rounded to the first decimal)? If the firm’s cutoff discounted payback period is 3 years, should it accept the project?
Calculate the conventional payback period for the following cash flows. Investment = $250,000 Salvage Value = 0 Service Life = 6 years n Cash flow 0 -250,000 1 75,000 2 55,000 3 65,000 4 25,000 5 35,000 6 20,000
A project has the following cash flows. What is the payback period? Year Cash Flow 0 −$ 10,000 1 1,800 2 3,600 3 5,000 4 6,000 2.83 years 2.38 years 2.75 years 2.92 years 3.03 years