a)Calculation of discounted payback period : | |||||
Year | Cashflows | PVF @ 13% | Present value | Cumulative cashflows | |
0 | -11500 | 1 | -11500 | -11500 | |
1 | 3400 | 0.885 | 3008.85 | -8491.15 | |
2 | 4280 | 0.783 | 3351.87 | -5139.28 | |
3 | 1620 | 0.693 | 1122.74 | -4016.54 | |
4 | 0 | 0.613 | 0.00 | -4016.54 | |
5 | 1100 | 0.543 | 597.04 | -3419.51 | |
Discounted payback period is more than 5 years. | |||||
Since discounted payback period is greater than maximum allowable period. So we should reject the | |||||
project. |
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 13...
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "O" (zero).) Project D Time: Cash flow: 0 -$11,600 1 $3,410 $4,300 34 $1,640 $0 $1,120 Discounted payback period 0 years Should the project be accepted or rejected? accepted rejected...
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).) Project D Time: 0 1 2 3 4 5 Cash flow: –$11,000 $3,350 $4,180 $1,520 $300 $1,000 Should the project be accepted or rejected? accepted rejected
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Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Project C Time Cash flow -$2,700 $1,160 $990 $1,030 $640 $440 0 2 4 Discounted payback period years Should the project be accepted or rejected? Rejected Accepted
Compute the payback statistic for Project B if the appropriate cost of capital is 10 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "O" (zero).) Project B Time: Cash flow: -512,900 12 $3,540 $4,560 $1,900 $0 $1,380 Payback years Should the project be accepted or rejected? accepted rejected < Prex 6 of 7 Ners > search OM
Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).) Project B Time: Cash flow: -$11,000 $3,350 $4,130 $1,520 $0 $1,000 Payback years Should the project be accepted or rejected? accepted rejected
Compute the payback statistic for Project B if the appropriate cost of capital is 13 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).) Project B Time: 0 1 2 3 4 5 Cash flow: −$11,800 $3,430 $4,340 $1,680 $0 $1,160 NPV? Should the project be accepted or rejected?