Calculation of payback period | ||||||
Year | Cash flow | Cumulative cash flows-A | ||||
0 | (100,000) | (100,000) | ||||
1 | 19,000 | (81,000) | ||||
2 | 19,000 | (62,000) | ||||
3 | 13,000 | (49,000) | ||||
4 | 13,000 | (36,000) | ||||
5 | 13,000 | (23,000) | ||||
6 | 13,000 | (10,000) | ||||
7 | 13,000 | 3,000 | ||||
8 | 13,000 | 16,000 | ||||
Payback | =6+(10000/13000) | |||||
Year | 6.77 |
Question 16 (1 point) What is the simple (undiscounted) payback period in years for a $100,000...
Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $17,000 each of the first two years and $12,000 for each year after. Your Answer: Answer
What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $10,000 for each year after.
Next Page Page 1 of 3 Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $9,000 for each year after. Your Answer: Answer
Next Page Page 1 of 3 Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $9,000 for each year after. Your Answer: Answer
Next Page Page 1 of 3 Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19.000 each of the first two years and $9,000 for each year after. Your Answer: Answer
[Select all relevant.] Deficiencies of the simple (undiscounted) payback period method include: o disregard for cash outflows. Onone of these. Payback is the best capital budgeting method of all. disregard for the time value of money. O an arbitrary cutoff date, with no economic basis. disregard for cash flows after the payback period.
11. 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: Green Caterpillar Garden Supplies Inc. 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 Omega's expected future cash flows....
11. 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: Fuzzy Button Clothing 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 Alpha's expected future cash flows. To...
What is the Payback Period and how to calculate it? G 1 PAYBACK PERIOD 5 Years PIZZA EQUIPMENT cutoff rate 2years 25000 YEAR O INVESTMENT (NOW) EXPECTED CASH FLOWS INCREMENTAL CASH FLOWS YEAR 1 REMAINING BALANCE 5000 10000 15000 O Partial Payback Remaining 16000 17000 10
5. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Cold Goose Metal Works Inc. 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 Beta's expected future cash flows. To answer this question, Cold Goose's CFO has asked that you...