(Question 7) McKenna Sports Authority is getting ready to produce a new line of gold clubs...
(Question 7)
McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $842,500, and $1,200,000 over the next three years. what is the payback period for this project? Round to four decimal places.
Homework Answers
Ans 2.4021 years
| Year | Cash Flow | Cumulative Cash Flow |
| 0 | -1850000 | -1850000 |
| 1 | 525000 | -1325000 |
| 2 | 842500 | -482500 |
| 3 | 1200000 | 717500 |
| 717500 | ||
| Payback Period = | 2 years + 482500/1200000 | |
| 2.4021 years |
Add Answer to:
(Question 7)
McKenna Sports Authority is getting ready to produce a
new line of gold clubs...
Christopher Electronics brought new machinery for $5,120,000 million. This is expected to result in additional cash...
Christopher Electronics brought new machinery for $5,120,000 million. This is expected to result in additional cash flows of $1,205,000 million over the next 7 years. What is the payback period for this project? Their acceptance period is five years. Round to two decimal places.
Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected...
Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,250, $823,330, and $907,125 over the next four years. What is the payback period for this project (rounded to two decimal places)? Select one: A. 2.12 years B. 1.88 years C. 4.00 years D. 3.00 years.
HOMIE food manufacturing company needs to make capacity decisions to produce a new product line to...
HOMIE food manufacturing company needs to make capacity decisions to produce a new product line to export to the regional market. As chief operations officer of this company, you are considering three options in the face of considerable uncertainties over the next four years: Option 1: Build a new factory, - New site cost is $6 million, - Payoffs: Strong demand = $12 million; Weak demand= $10 million. Option 2: Expand at current site, - Expanding current site cost is...
6. A project has the following cash flows. What is the payback period? 7. Delta Mu...
6. A project has the following cash flows. What is
the payback period?
7. Delta Mu Delta is considering purchasing some new
equipment costing $373,000. The equipment will be depreciated on a
straight-line basis to a zero book value over the four-year life of
the project. Projected net income for the four years is $16,900,
$25,300, $27,700, and $18,400. What is the average accounting rate
of return?
8. Miller Brothers is considering a project that
will produce cash inflows of...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estimated development time...
The Tuff Wheels was getting ready to start its development project for a new product to...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estinated development time...
NexxGen is a Pharmaceutical Company which is considering investing in a new production line of portable...
NexxGen is a Pharmaceutical Company which is considering investing in a new production line of portable electrocardiogram (ECG) machines for its clients who suffer from cardiovascular diseases. The company has to invest in equipment which costs $2,500,000 and falls within a MARCS depreciation of 5 years, and is expected to have a scrap value of $200,000 at the end of the project. Other than the equipment, the company needs to increase its cash and cash equivalents by $100,000, increase the...
The Tuff Wheels was getting ready to start its development project for a new product to...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estimated development time...
The Tuff Wheels was getting ready to start its development project for a new product to...
The Tuff Wheels was getting ready to start its development
project for a new product to be added to their small motorized
vehicle line for children. The new product is called the Kiddy
Dozer. It will look like a miniature bulldozer, complete with
caterpillar tracks and a blade. Tuff Wheels has forecasted the
demand and the cost to develop and produce the new Kiddy Dozer. The
table below contains the relevant information for this project.
Development cost
$
1,100,000
Estimated...
The Tuff Wheels was getting ready to start its development project for a new product to...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estimated development time...
6. A project has the following cash flows. What is
the payback period?
7. Delta Mu Delta is considering purchasing some new
equipment costing $373,000. The equipment will be depreciated on a
straight-line basis to a zero book value over the four-year life of
the project. Projected net income for the four years is $16,900,
$25,300, $27,700, and $18,400. What is the average accounting rate
of return?
8. Miller Brothers is considering a project that
will produce cash inflows of...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estimated development time...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estinated development time...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estimated development time...
The Tuff Wheels was getting ready to start its development
project for a new product to be added to their small motorized
vehicle line for children. The new product is called the Kiddy
Dozer. It will look like a miniature bulldozer, complete with
caterpillar tracks and a blade. Tuff Wheels has forecasted the
demand and the cost to develop and produce the new Kiddy Dozer. The
table below contains the relevant information for this project.
Development cost
$
1,100,000
Estimated...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estimated development time...
Most questions answered within 3 hours.
-
What kinds of transitions form the basis for AA and AE?
Can the detector differentiate wavelengths...
asked 6 minutes ago -
Twenty percent of all telephones of a certain type are submitted
for service while under warranty....
asked 6 minutes ago -
A
roller coaster cart of mass 312 kg travels around a horizontal
curve of radius 41.3...
asked 6 minutes ago -
If I have a function in python, say show(B), how would I code it
so that...
asked 8 minutes ago -
Size properly the power supply that you need to purchase if you
have the following equipment....
asked 8 minutes ago -
Is voter turnout in Texas a problem? If so how can this issue be
addressed to...
asked 15 minutes ago -
Assume we have these two classes. Note that they are in
separate packages. If the code...
asked 26 minutes ago -
In 250 words, Which theory made the most sense to you in
explaining crimes in a...
asked 25 minutes ago -
An undiscovered planet, many light-years from Earth, has one
moon, which has a nearly circular periodic...
asked 27 minutes ago -
Design and implement a simple, interactive shell program that
prompt the user for a command, parser...
asked 37 minutes ago -
Describe some respiratory and cardiovascular adaptations
enabling dolphins to stay underwater for long periods of time....
asked 44 minutes ago -
In a Poisson distribution, μ=.30μ=.30. (Round your
answers to 4 decimal places.)
(a)
What is...
asked 46 minutes ago