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Project's payback period = 3.2 years
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Consider the cash flow shown in the table below, what is the project's payback period? Year...
Complete the following table and compute the project's conventional payback period. For full credit, complete the...
Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Note: Round the conventional payback period to two decimal places Year 1 Year 2 Year 0 Year 3 Expected cash flow -5,500,000 $2,200,000 $4,675,000 $1,925,000 Cumulative cash flow Conventional payback period: The conventional payback period ignores the time value of money, and this concerns Fuzzy Button's CFO. He has now asked you to compute Alpha's discounted payback period, assuming the company has...
Complete the following table and compute the project's conventional payback period. For full credit, complete the...
Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Year 0 Year 1 Year 2 Year 3 Expected cash flow $2,000,000 $4,250,000 $1,750,000 5,000,000 Cumulative cash flow Conventional payback period: The conventional payback period ignores the time value of money, and this concerns Blue Hamster's CFO. He has now asked you to compute Omega's discounted payback period, assuming the company has a 7% cost of capital. Complete the following table and...
Complete the following table and compute the project's conventional payback period. For full credit, complete the...
Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) Year 0 Year 1 Year 2 Year 3 -$6,000,000 $2,400,000 $5,100,000 $2,100,000 Expected cash flow Cumulative cash flow Conventional payback period: years The conventional payback period ignores the time value of money, and this concerns Cold Goose's...
Payback period. What are the payback periods of projects E and F in the following table:93: ? Assume all the cash flow...
Payback period. What are the payback periods of projects E and F in the following table:93: ? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 years, which project(s) do you accept? What is the payback period for project E? Data Table years (Round to one decimal place.) (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Cost Cash flow year 1 Cash flow year...
7.The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a projec...
7.The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period 2.50 years. Year Cash Flow $275,000 Year 1 Year 2 $400,000 Year 3 $475,000 Year 4 $475,000 f the project's...
5. The NPV and payback period What Information does the payback period provide? Suppose you are...
5. The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's not present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years Year Cash Flow Year 1 $375,000 Year 1425.000 Year 3 Year 4 $450,000 $500,000 If the...
Consider the investment project in the table below with four-year investment life n Project Cash Flow...
Consider the investment project in the table below with four-year investment life n Project Cash Flow ($) 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).
What is the payback period for the following set of cash flows? Year Cash Flow...
What is the payback period for the following set of cash flows? Year Cash Flow 0 −$ 5,000 1 2,700 2 1,200 3 1,900 4 2,300
Calculate NPV based on cash flow and payback period
Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years.The project's annual cash flows are:YearCash FlowYear 1$375,000Year 2450,000Year 3300,000Year 4400,000If the project’s desired rate of return is 9.00%, the project’s NPV—rounded to the nearest whole dollar—is .Which of the following...
What is the payback period for the following set of cash flows? Year Cash Flow 0...
What is the payback period for the following set of cash flows? Year Cash Flow 0 −$ 5,300 1 1,300 2 3,000 3 2,200 4 1,600
Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Note: Round the conventional payback period to two decimal places Year 1 Year 2 Year 0 Year 3 Expected cash flow -5,500,000 $2,200,000 $4,675,000 $1,925,000 Cumulative cash flow Conventional payback period: The conventional payback period ignores the time value of money, and this concerns Fuzzy Button's CFO. He has now asked you to compute Alpha's discounted payback period, assuming the company has...
Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Year 0 Year 1 Year 2 Year 3 Expected cash flow $2,000,000 $4,250,000 $1,750,000 5,000,000 Cumulative cash flow Conventional payback period: The conventional payback period ignores the time value of money, and this concerns Blue Hamster's CFO. He has now asked you to compute Omega's discounted payback period, assuming the company has a 7% cost of capital. Complete the following table and...
Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) Year 0 Year 1 Year 2 Year 3 -$6,000,000 $2,400,000 $5,100,000 $2,100,000 Expected cash flow Cumulative cash flow Conventional payback period: years The conventional payback period ignores the time value of money, and this concerns Cold Goose's...
Payback period. What are the payback periods of projects E and F in the following table:93: ? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 years, which project(s) do you accept? What is the payback period for project E? Data Table years (Round to one decimal place.) (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Cost Cash flow year 1 Cash flow year...
7.The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period 2.50 years. Year Cash Flow $275,000 Year 1 Year 2 $400,000 Year 3 $475,000 Year 4 $475,000 f the project's...
5. The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's not present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years Year Cash Flow Year 1 $375,000 Year 1425.000 Year 3 Year 4 $450,000 $500,000 If the...
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