Location - 1.
>> Payback period = Initial Investment / Net Cash flows
>> Payback period = $ 175,000 / $ 35,000
>> Payback period = 5 Years.
Cash payback period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals...
Cash payback period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $175,000 and each with an eight-year life and expected total net cash flows of $280,000. Location 1 is expected to provide equal annual net cash flows of $35,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $79,000 Year 5 $25,000 Year 2 60,000 Year 6 19,000...
Cash Payback Period Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $476,000 and each with an eight-year life and expected total net cash flows of $544,000. Location 1 is expected to provide equal annual net cash flows of $68,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $171,000 Year 2 124,000 Year 3 81,000 Year 4 62,000 Year 5 38,000 Year 6...
Cash Payback Period for a Service Company Chinook Industries Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $900,000 and each with an eight-year life and expected total net cash flows of $1,000,000. Location 1 is expected to provide equal annual net cash flows of $200,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $300,000 Year 5 $50,000 Year 2 220,000 Year 6 50,000 Year...
Cash Payback period for a Service Company Jane's Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $150,000 and each with an eight-year life and expected total net cash flows of $240,000. Location 1 is expected to provide equal annual net cash flows of $30,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $59,000 Year 2 44,000 29,000 Year 3 Year 4 18,000 Year...
Wyoming Woodworks is evaluating two capital investment proposals for a retail outlet store, each requiring an investment of $1,015,000 and each with a five-year life and expected total net cash flows of $1,268,750. Location 1 is expected to provide equal annual net cash flows of $253,750, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $406,000 Year 2 376,000 Year 3 233,000 Year 4 176,900 Year 5 76,850 Determine the cash payback period...
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $69,000 $69,000 $69,000 Cash flow from operations Year 1 60,000 34,500 69,000 Year 2 9,000 34,500 Year 3 33,500 33,500 Disinvestment 0. Life (years) 3 years 3 years 1 year(a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and...
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $98,000 $98,000 $98,000 Cash flow from operations Year 1 90,000 49,000 98,000 Year 2 8,000 49,000 Year 3 49,000 49,000 Disinvestment 0 0 0 Life (years) 3 years 3 years 1 year (a) Select the best investment proposal using the payback period, the accounting rate...
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $92,000 $92,000 $92,000 Cash flow from operations Year 1 90,000 46,000 92,000 Year 2 2,000 46,000 Year 3 47,500 47,500 Disinvestment 0 0 0 Life (years) 3 years 3 years 1 year (a) Select the best investment proposal using the payback period, the accounting rate of...
431 Chapter 10 Capital Investment Analysis -2 p414 PE 10-2A Cash payback period OBJ.2 Determine the as estimated annual net cash flows of $118,600. It is estimated to cost $616,720. cash payback period. Round to one decimal place. Cash payback period -2 p414 PE 10.2B OBJ. 2 project has estimated annual net cash flows of $9.300. It is estimated to cost $41,850 Determine the cash payback period. Round to one decimal place. 3 p419 PE 10-3A Net present value 818...
Payback Period, IRR, and Minimum Cash Flows The management of Mohawk Limited is currently evaluating the following investment proposal: Time 0 Year 1 Year 2 Year 3 Year 4 Initial investment $ 150,000 -- -- -- -- Net operating cash inflows -- $ 50,000 $ 50,000 $ 50,000 $ 50,000 (a) Determine the proposal's payback period. _____ years (b) Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table approach.) Round answer to...