Homework Answers
For finding a discounted payback period we need to find the present value of future revenue and then find Cumulative cash flow (CCF), we need to find the year in which CCF turns positive
We will use formula P = F/(1+i)^t to find the present value of future cash flows
Discounted payback period = Year bef CCF turns positive + (Absolute value of CCF bef it turns positive/Present value of cash flow in the year in which CCF turns positive)
| year | Net cash Flow | Discount factor | Present value | Cumulative Cash flow |
| 0 | -275000 | 1.00000 | -2,75,000.00 | -2,75,000.00 |
| 1 | -35000 | 0.92593 | -32,407.41 | -3,07,407.41 |
| 2 | 100000 | 0.85734 | 85,733.88 | -2,21,673.53 |
| 3 | 125000 | 0.79383 | 99,229.03 | -1,22,444.50 |
| 4 | 150000 | 0.73503 | 1,10,254.48 | -12,190.02 |
| 5 | 250000 | 0.68058 | 1,70,145.80 | 1,57,955.78 |
| 6 | 300000 | 0.63017 | 1,89,050.89 | 3,47,006.67 |
Discounted payback period = 4 + 12190.02 / 170145.80 = 4+0.0716 = 4.07 yrs
Add Answer to:
Given the following cash flows what is the discounted payback period if MARR-8%? Ans. Xxx Year...
Given the following cash flows for a capital project, calculate its payback period and discounted payback...
Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent. Year 4 Cash Flows $-44300 $11950 2 $13350 3 $19000 $8000 $3000 The discounted payback period is 0.16 year longer than the payback period. 0.80 year longer than the payback period. 1.40 years longer than the payback period. 1.85 years longer than the payback period.
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback...
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $100,000 and the following cash flows? Year 1 $30,000 Year 2 $35,000 Year 3 $25,000 Year 4 $25,000 Year 5 $30,000 Year 6 $20,000 The project's discounted payback period is years. (Round to two decimal places.)
What is the discounted payback period of Project A in the following table if MARR is...
What is the discounted payback period of Project A in the following table if MARR is 15%? Project's Cash Flow Model A Model B 0 -$6,000 3,500 3,500 -$15,000 10,000 10,000 3,500 Select one: a. 1 year cross out cross out b. 2 years cross out c. 3 years cross out d. no payback period
Gio's Restaurants is considering a project with the following expected cash flows: (Discounted payback period) Gio's...
Gio's Restaurants is considering a project with the following
expected cash flows:
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(240) 0 1 92 65 3 92 4 90 If the project's appropriate discount rate is 8 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) O N M
(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) $(210) AWNO 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.) (Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Project A Project B Year Cash Flow...
(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) $(210) AWNO 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) Gio's Restaurants is considering a project with the following expected cash flows....
( Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows. If the project's appropriate discount rate is 11 percent, what is the projects's discounted payback period? expected cash flows: Year Project Cash Flow 0 - $180 million 1 90 million 2 65 million 3 100 million 4 100 million The Project's discounted payback period is ____
( Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows....
( Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows. If the project's appropriate discount rate is 11 percent, what is the projects's discounted payback period? expected cash flows: Year Project Cash Flow 0 -$180 million 1 90 million 2 65 million 3 100 million 4 100 million The Project's discounted payback period is ____ ?
(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) $(210) 85 60 95 If the project's appropriate discount rate is 12 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) Gio's Restaurants is considering a project with the following expected cash flows:...
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) 0 $(180) 1 100 2 65 3 100 4 110 If the project's appropriate discount rate is 13 percent, what is the project's discounted payback period? The project's discounted payback period is _____ years. (Round to two decimal places.)
Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent. Year 4 Cash Flows $-44300 $11950 2 $13350 3 $19000 $8000 $3000 The discounted payback period is 0.16 year longer than the payback period. 0.80 year longer than the payback period. 1.40 years longer than the payback period. 1.85 years longer than the payback period.
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $100,000 and the following cash flows? Year 1 $30,000 Year 2 $35,000 Year 3 $25,000 Year 4 $25,000 Year 5 $30,000 Year 6 $20,000 The project's discounted payback period is years. (Round to two decimal places.)
What is the discounted payback period of Project A in the following table if MARR is 15%? Project's Cash Flow Model A Model B 0 -$6,000 3,500 3,500 -$15,000 10,000 10,000 3,500 Select one: a. 1 year cross out cross out b. 2 years cross out c. 3 years cross out d. no payback period
Gio's Restaurants is considering a project with the following
expected cash flows:
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(240) 0 1 92 65 3 92 4 90 If the project's appropriate discount rate is 8 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) O N M
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(210) AWNO 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.) (Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Project A Project B Year Cash Flow...
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(210) AWNO 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) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(210) 85 60 95 If the project's appropriate discount rate is 12 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.)
Most questions answered within 3 hours.
-
Create a class called Hotel. The hotel class will track the
current reservations for your one-room...
asked 17 minutes ago -
In space, a 4.0 kg metal ball moving 30 m/s has a head on
collision with...
asked 27 minutes ago -
Financial Markets and Corporate Strategy (assignment template) –
1 of 2
Insights/Instructions: Use this template to...
asked 24 minutes ago -
A firm has announced a cash dividend of $3 dollar per share.
Assuming an efficient market,...
asked 20 minutes ago -
Which of the following statements is consistent with the fact
that capital in an economy is...
asked 35 minutes ago -
Would you hire a white hat hacker or black hat hacker? What are
the pros and...
asked 39 minutes ago -
The CFO is conducting a meeting and she says "we shouldn't
accept this project because we...
asked 41 minutes ago -
How do you obtain the discount rate for an international capital
budgeting problem?
asked 38 minutes ago -
Hi, please read the entire problem.
I need help with the BusOrder class and test for...
asked 40 minutes ago -
Hello, regarding the photoelectric effect I had a couple
questions:
Red light is shining on a...
asked 56 minutes ago -
build a sample navigation Sprite in css ?
asked 54 minutes ago -
Please write a C# program for an concert sale with the
requirements below in Console Form:...
asked 57 minutes ago