Dems Inc is considering a project that has the following cash flows $1215 outflow today $500...
Dems Inc is considering a project that has the following cash flows $1215 outflow today $500 in years 1 through 3 and $800 in year 4. what is the projects payback?
Homework Answers
| Year | Cash flows | Cumulative Cash flows |
| 0 | (1215) | (1215) |
| 1 | 500 | (715) |
| 2 | 500 | (215) |
| 3 | 500 | 285 |
| 4 | 800 | 1085 |
Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).
=2+(215/500)
=2.43 years.
Add Answer to:
Dems Inc is considering a project that has the following cash
flows $1215 outflow today $500...
Alpha Enterprises, Inc. is considering a project that has the following cash flows: Year Cash Flow...
Alpha Enterprises, Inc. is considering a project that has the following cash flows: Year Cash Flow 0 -$1,000 1 500 2 300 3 700 4 400 The company’s WACC is 10%. What is the project’s ordinary payback?
Nichols Inc. is considering a project that has the following cash flow data. What is the...
Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. Year 0 1 2 3 4 5 Cash flows −$1,250 $325 $325 $325 $325 $325 a. 10.92% b. 9.43% c. 11.47% d. 10.40% e. 9.91% Westwood Painting Co. is considering a project that has the following cash flow and cost...
Assume the following cash flows for a convenience store project you are considering, the initial outflow...
Assume the following cash flows for a convenience store project you are considering, the initial outflow is $657,338 followed by ten operating cash flows $123,550 in years 1 to 10. You will also receive a terminal cash flow of $438,500 also at year 10. Compute the Payback of the project given an interest rate of 12%.
Alpha Enterprises, Inc. is considering a project that has the following cash flows: Year: Cash Flow;...
Alpha Enterprises, Inc. is considering a project that has the following cash flows: Year: Cash Flow; 0: -$1,000 1: 500 2: 300 3: 900 4: 400 The company’s WACC is 10%. What is the project’s ordinary payback? Enter your answer rounded to two decimal places.
Question 14 (5 points) Mansi Inc. is considering a project that has the attached cash flows....
Question 14 (5 points) Mansi Inc. is considering a project that has the attached cash flows. What is its regular payback? 1 Year Cash flows 0 - $500 2 $200 3 $500 $150 A) 3.00 years B) 2.50 years C) 2.75 years D) 2.15 years E) 2.30 years
1. Sanders Inc., is considering a project with the following cash flows. Year Cash Flows 0...
1. Sanders Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$50,000 1 $10,659 2 $15,437 3 $45,103 4 $75,074 5 $250,682 What is the regular payback period for this project? [Enter the final answer in as a decimal (e.g. 5.55) - not a percent] 2. Sanders Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$50,000 1 $10,988 2 $15,644 3 $20,216 4 $40,031 5 $133,490 What is the...
1. Allen Inc., is considering a project with the following cash flows. Year Cash Flows 0...
1. Allen Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$32,374 1 $6,334 2 $13,790 3 $12,995 4 $20,673 5 $29,260 The company uses a discount rate of 7 percent on all of its projects. Calculate the profitability index of the project? 2. Elway Corp. is considering a project with the following cash flows. Year Cash Flows 0 -$45,331 1 $15,903 2 $24,490 3 $34,625 4 -$11,486 5 $40,937 The company uses a discount...
Geraldine Consultants, Inc. is considering a project that has the following cash flows: Year Cash Flow...
Geraldine Consultants, Inc. is considering a project that has the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3 500 4 400 The company's WACC is 10%. What are the project's payback, internal rate of return, and net present value? Select one: a. Payback = 2.6, IRR = 21.22%, NPV = $300. b. Payback = 2.4, IRR = 21.22%, NPV = $260. c. Payback = 2.6, IRR = 24.12%, NPV = $300. d. Payback = 2.4,...
Question 16: McGlothin Inc. is considering a project that has the following cash flow data. What...
Question 16: McGlothin Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows −$1,150 $500 $500 $500
Your firm is considering two projects with the following cash flows: Cash flows from project B...
Your firm is considering two projects with the following cash flows: Cash flows from project B (£000) (500) 200 250 170 25 30 Year Cash flows from project A (£000) 0(500) 167 180 160 100 100 4 1. Calculate the ARR and payback rule 2. If the appropriate discount rate is 12%, rank the two projects 3. Which project is preferred if you rank by IRR? 4. Calculate the discount rate (r) for which the NPVs of both projects are...
Question 14 (5 points) Mansi Inc. is considering a project that has the attached cash flows. What is its regular payback? 1 Year Cash flows 0 - $500 2 $200 3 $500 $150 A) 3.00 years B) 2.50 years C) 2.75 years D) 2.15 years E) 2.30 years
Your firm is considering two projects with the following cash flows: Cash flows from project B (£000) (500) 200 250 170 25 30 Year Cash flows from project A (£000) 0(500) 167 180 160 100 100 4 1. Calculate the ARR and payback rule 2. If the appropriate discount rate is 12%, rank the two projects 3. Which project is preferred if you rank by IRR? 4. Calculate the discount rate (r) for which the NPVs of both projects are...
Most questions answered within 3 hours.
-
You are attempting to calculate a firm’s free cash flow to
equity. You know the following...
asked 32 minutes ago -
the following reaction occurs in a balloon containing
N2O2 gas
N2O4(g)=2NO2(g)
will the volume of the...
asked 1 hour ago -
answer the questions throughout this program
public class Day implements Comparable {
Private Boolean atWork;...
asked 1 hour ago -
This is C++ code for parking fee management program
#include <iostream>
#include <iomanip>
using namespace std;...
asked 1 hour ago -
The free energy change for the following reaction at 25 °C, when
[Sn2+] = 1.17 M...
asked 3 hours ago -
An MNE is this kind of industry when competition in one country
is essentially independent of...
asked 4 hours ago -
. For this set of questions, determine what
proportion of a normal distribution is located betweeneach...
asked 5 hours ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 6 hours ago -
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 5 hours ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 6 hours ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 7 hours ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 7 hours ago