14.A project requires an investment of $2,700 today. It can generate sales of $3,300 per year...
A project that costs $16,000 today will generate cash flows of $3,300 per year for seven years. What is the project's payback period? 1. 3.88 years 2. 4.85 years 3. .21 years 4. 5.00 years 5. 4.04 years
an investment project requires an initial outlay of $2400 and can generate revenues of $2000 per year. In the first year, operating costs are $600; thereafter operating costs increase by $500 a year. 1) what is the maximum length of time for which the project should operate? 2) should it be undertaken if the interest rate is 5%? 3) should it be undertaken if the interest rate is 10%?
A project requires an investment of $15000 today and it is expected to generate free cash flows of $5000 per year for 4 years. The company’s weighted average cost of capital is 10.1% per year. What is the projects equivalent annual annuity?
A project requires an investment of $200 million today and will generate in a year $300 million or $150 million with 0.6 and 0.4 probability, respectively. The risk-free rate is 5% and the Market risk premium is 7%. The project's systematic risk coefficient is 1.5. The project's discount rate (required return) is:
A project requires an investment of $1,200 today and it is expected to generate free cash flows of $400 at the end of year 1, $500 at the end of year 2 and, $700 at the end of year 3. The company's weighted average cost of capital is 10.4% per year. What is the project's equivalent annual annuity? 1) $19.7 2) $28.3 3) $37.6 4) $16.4 5) $33.9
a. Project A costs $5,500 and will generate annual after-tax net cash inflows of $2,600 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $5,500 and will generate after-tax cash inflows of $660 in year 1, $1,400 in year 2, $2,400 in year 3, $2,700 in year 4, and $2,400 in year 5. What is...
A project costs $91,000 today and is expected to generate cash flows of $11,000 per year for the next 20 years. The firm has a cost of capital (discount rate) of 8 percent. Should this project be accepted, and why.
12-9. Answer each independent question, (a) through (e), below. a. Project A costs $7,500 and will generate annual after-tax net cash inflows of $3,100 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $7,500 and will generate after-tax cash inflows of $1,000 in year 1, $1,900 in year 2, $3,300 in year 3, $2,900 in...
Answer each independent question, (a) through (e), below. a. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $5,000 and will generate after-tax cash inflows of $500 in year 1; $1,200 in year 2; $2,000 in year 3, $2,500 in year...
A project that costs $23,000 today will generate cash flows of $8,900 per year for seven years. What is the project's payback period?