Create a cash flow for a simple investment project with a 4-year life that produces a...
Create a cash flow for a simple investment project with a 4-year life that produces a discounted payback of 3 years and an IRR of 8%/year if the MARR is 4%. Please show work not just an excel calculation
Homework Answers
Add Answer to:
Create a cash flow for a simple investment project with a 4-year
life that produces a...
3. (5 pts) Create a cash flow for a simple investment project with a 4-year life...
3. (5 pts) Create a cash flow for a simple investment project with a 4-year life that produces a discounted payback of 3 years and an IRR of 8%/year if the MARR is 4%.
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).
J&E Enterprises is considering and investment which produces no cash flows for the first year. In...
J&E Enterprises is considering and investment which produces
no cash flows for the first year. In the second year, the cash
inflow is $47,000. This inflow will increase to $198,000 and then
$226,000 for the following two years, respectively, before ceasing
permanently. The initial investment will cost $318,000. The firm
requires a 15.5 percent rate of return and has a required
discounted payback period of three years. Should the project be
accepted? Why or why not? show all work
Year...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 350,000 –$ 50,000 1 45,000 24,000 2 65,000 22,000 3 65,000 19,500 4 440,000 14,600 Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Payback Period Project A years Project B years a-2. If you apply the payback criterion, which investment will...
Suppose your firm is considering investing in a project with the cash flow shown below, that...
Suppose your firm is considering investing in a project with the cash flow shown below, that the required rate of return on projects of this risk class is 11%, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively Time 0 1 2 3 4 5 Cash flow -$235,000 $65,800 $84,000 $141,000 $122,000 $81,200 . Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected?...
Consider the following two mutually exclusive projects: Cash Flow Year 0 Cash Flow (B) - $...
Consider the following two mutually exclusive projects: Cash Flow Year 0 Cash Flow (B) - $ 50,000 24,000 22,000 19,500 14, 600 - $ 350,000 45,000 65,000 65,000 440,000 AM + Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Payback Period Project A Project B years years a-2. If you apply the payback criterion, which investment will...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$194,527...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$194,527 –$15,905 1 27,700 5,627 2 52,000 8,470 3 52,000 13,908 4 413,000 8,564 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? b. What is the payback period for Project B? c. What is the discounted payback period for Project A? d. What is the discounted payback period for...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) $195,640 26,500...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) $195,640 26,500 52,000 51,000 390,000 -$16,290 5,293 8,843 13,587 9,577 0 2 3 4 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A?b. What is the payback period for Project B? c. What is the discounted payback period for Project A?d. What is the discounted payback period for Project B? e....
Given the following attributes of an investment project with a five-year life: investment outlay, year 0,...
Given the following attributes of an investment project with a five-year life: investment outlay, year 0, $8,700; after-tax cash inflows, year 1, $930; year 2, $1,070; year 3, $3,200; year 4, $3,500; and year 5, $4,900. (a) Use the built-in NPV function of Excel to estimate the NPV of this project. Assume an after-tax discount rate of 11.0% (b) Estimate the payback period, in years, for this project under the assumption that cash inflows occur evenly throughout the year. (Round...
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year...
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(240) 72 80 95 If the project's appropriate discount rate is 11 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) (Discounted payback period) The Callaway Cattle Company is considering the construction of a new feed handling system for its feed lot in Abilene, Kansas. The new system will...
J&E Enterprises is considering and investment which produces
no cash flows for the first year. In the second year, the cash
inflow is $47,000. This inflow will increase to $198,000 and then
$226,000 for the following two years, respectively, before ceasing
permanently. The initial investment will cost $318,000. The firm
requires a 15.5 percent rate of return and has a required
discounted payback period of three years. Should the project be
accepted? Why or why not? show all work
Year...
Consider the following two mutually exclusive projects: Cash Flow Year 0 Cash Flow (B) - $ 50,000 24,000 22,000 19,500 14, 600 - $ 350,000 45,000 65,000 65,000 440,000 AM + Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Payback Period Project A Project B years years a-2. If you apply the payback criterion, which investment will...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) $195,640 26,500 52,000 51,000 390,000 -$16,290 5,293 8,843 13,587 9,577 0 2 3 4 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A?b. What is the payback period for Project B? c. What is the discounted payback period for Project A?d. What is the discounted payback period for Project B? e....
Given the following attributes of an investment project with a five-year life: investment outlay, year 0, $8,700; after-tax cash inflows, year 1, $930; year 2, $1,070; year 3, $3,200; year 4, $3,500; and year 5, $4,900. (a) Use the built-in NPV function of Excel to estimate the NPV of this project. Assume an after-tax discount rate of 11.0% (b) Estimate the payback period, in years, for this project under the assumption that cash inflows occur evenly throughout the year. (Round...
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(240) 72 80 95 If the project's appropriate discount rate is 11 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) (Discounted payback period) The Callaway Cattle Company is considering the construction of a new feed handling system for its feed lot in Abilene, Kansas. The new system will...
Most questions answered within 3 hours.
-
CSC-295 Spring
2019
Assignment – String,
StringBuilder and StringBuffer
Write an application
that prompts the user...
asked 1 minute ago -
Code the following interfaces - An interface called Accountable
with void withdraw(double) and double getPayment() methods,...
asked 1 minute ago -
When AC current flows in a circuit, energy is moved into the
circuit during the positive...
asked 13 minutes ago -
Suppose that each time Bob shoots a free throw, he has a 3/4
probability of success....
asked 17 minutes ago -
What is 0.93 mL in mmol?
for 3-chlorobenzaldehyde
asked 17 minutes ago -
Within the social determinants theory of how health is related
to socioeconomic status (SES), there are...
asked 18 minutes ago -
Explain 3 situations/conditions under which synchronous broods
are more adaptive than asynchronous broods ( chicks that...
asked 33 minutes ago -
1) How many moles of oxygen atoms are present in one mol of
(C2H5COO)2Ca?
2)In a...
asked 21 minutes ago -
plz help me to do this step by step in excel. Bay Community
Hospital The staff...
asked 28 minutes ago -
Mass of KHP + Beaker
31.02g
Mass of Beaker (0 if tared)
27.97g
Mass of KHP...
asked 35 minutes ago -
Write a bash shell script called direct.sh. This script will
take an arbitrary number of command...
asked 46 minutes ago -
1) Suppose you added 100 mL of water to your vinegar sample in
the Erlenmeyer flask...
asked 47 minutes ago