1.
A project has an initial cost of $59,925, expected net cash inflows of $14,000 per year for 6 years, and a cost of capital of 9%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
2.
A project has an initial cost of $56,300, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places.
How many years ____
3.
A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 13%. What is the project's discounted payback period? Round your answer to two decimal places.
How many years _____
1.PI = Present value of cash inflows/Initial Cost
= 14,000*PVAF(9%, 6 years)/59,925
= 14,000*4.4859/59,925
= 1.05
2.Payback period = Initial cost/Annual cash inflows
= 56,300/12,000
= 4.69 years
3.Discounted payback period:
Year |
Cash flow |
PVF |
Discounted cash flow |
Cumulative Cash flow |
0 |
-60,000 |
1 |
-60,000 |
-60,000 |
1 |
14,000 |
0.885 |
12,390 |
-47,610 |
2 |
14,000 |
0.783 |
10,962 |
-36,648 |
3 |
14,000 |
0.693 |
9,702 |
-26,946 |
4 |
14,000 |
0.613 |
8,582 |
-18,364 |
5 |
14,000 |
0.543 |
7,602 |
-10,762 |
6 |
14,000 |
0.480 |
6,720 |
-4,042 |
7 |
14,000 |
0.425 |
5,950 |
1,908 |
Discounted payback period = 6 + 4,042/5,950
= 6.68 years
1. A project has an initial cost of $59,925, expected net cash inflows of $14,000 per...
A project has an initial cost of $42,200, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. A project has an initial cost of $56,300, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to...
A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 13%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
A project has an initial cost of $73,075, expected net cash inflows of $14,000 per year for 8 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.
1. A project has an initial cost of $37,050, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. 2. A project has an initial cost of $49,700, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 11%. What is the project's payback period? Round your...
A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? (Hint:Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
Discounted Payback A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%, what is the project's discounted Payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places. years
A project has an initial cost of $44,700, expected net cash inflows of $15,000 per year for 12 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent. A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 8%. What is the...
Discounted Payback A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 12%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
A project has an initial cost of $60,000, expected net cash inflows of $13,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.