Oriental Corporation has gathered the following data on a proposed investment project: Inve...
Oriental Corporation has gathered the following data on a proposed investment project:
| Investment in depreciable equipment | $ | 610,000 | |
| Annual net cash flows | $ | 88,000 | |
| Life of the equipment | 16 | years | |
| Salvage value | $ | 0 | |
| Discount rate | 10 | % | |
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.
The payback period for the investment would be:
Homework Answers
The payback period for the investment would be: 6.93 years rounded off to 2 decimal place
or 6.9 years rounded off to 1 decimal place
or 7 Years rounded off to 0 decimal place
Working
| Payback Period | |||||
| Choose Numerator | / | Choose Denominator | = | Payback Period | |
| Initial Investment | / | Net cash inflow | = | Payback Period | |
| Project A | $ 6,10,000.00 | / | $ 88,000.00 | = | 6.93 Years |
Add Answer to:
Oriental Corporation has gathered the following data on a proposed investment project: Inve...
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment...
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment Annual net cash flows Life of the equipment Salvage value Discount rate $200,000 $ 50,000 10 years 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment would be: Multiple Choice o • o
2. Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable...
2.
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment Annual net cash flows Life of the equipment Salvage value Discount rate $ 450,000 $ 90,000 10 years $ 0 78 The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: Joetz Corporation has gathered the following data on a proposed investment project (Ignore...
joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment...
joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 30,000 Annual cash inflows $ 6,000 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment is: Multiple Choice 5 years 15 years 2 years...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 39,500 Annual cash inflows $ 9,800 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s)...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 40,000 Annual cash inflows $ 10,000 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the investment (rounded to the nearest tenth of a...
Overland Corporation has gathered the following data on a proposed investment project: The company uses straight-line...
Overland Corporation has gathered the following data on a
proposed investment project:
The company uses straight-line depreciation on all equipment.
Assume cash flows occur uniformly throughout a year except for the
initial investment.
The accrual accounting rate of return on the investment is:
A. 10.00%
B. 16.67%
C. 36.67%
D. 26.67%
$150,000 $40,000 Investment required in equipment Annual cash inflows Salvage value of equipment... Life of the investment........ Required rate of return ............. $0 10 years 10%
Joetz Corporation has gathered the following data on a proposed investment project (lgnore income taxes.) $37,000...
Joetz Corporation has gathered the following data on a proposed investment project (lgnore income taxes.) $37,000 $8,800 Investment required in equipment Annual cash inflows Salvage value of equipment 0 15 years Life of the investment Required rate of return 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided...
Joetz Corporation has gathered the following data on a proposed investment project (lgnore income taxes.) $38,500...
Joetz Corporation has gathered the following data on a proposed investment project (lgnore income taxes.) $38,500 9,400 Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment 15 years Required rate of return 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. The...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore Income taxe $37.000 $ 8,...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore Income taxe $37.000 $ 8,000 Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return 15 years 105 The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial Inve Click here to view Exhibit78-1 and Exhibit 78-2. to determine the appropriate discount factors) using the tables provided The...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost of the equipment Annual cash savings Life of the machine $50,000 $15,000 8 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project. The payback period is closest to: Multiple Choice 3.33 years o 30 years o 8.0 years 8.0 years...
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment Annual net cash flows Life of the equipment Salvage value Discount rate $200,000 $ 50,000 10 years 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment would be: Multiple Choice o • o
2.
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment Annual net cash flows Life of the equipment Salvage value Discount rate $ 450,000 $ 90,000 10 years $ 0 78 The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: Joetz Corporation has gathered the following data on a proposed investment project (Ignore...
Overland Corporation has gathered the following data on a
proposed investment project:
The company uses straight-line depreciation on all equipment.
Assume cash flows occur uniformly throughout a year except for the
initial investment.
The accrual accounting rate of return on the investment is:
A. 10.00%
B. 16.67%
C. 36.67%
D. 26.67%
$150,000 $40,000 Investment required in equipment Annual cash inflows Salvage value of equipment... Life of the investment........ Required rate of return ............. $0 10 years 10%
Joetz Corporation has gathered the following data on a proposed investment project (lgnore income taxes.) $37,000 $8,800 Investment required in equipment Annual cash inflows Salvage value of equipment 0 15 years Life of the investment Required rate of return 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided...
Joetz Corporation has gathered the following data on a proposed investment project (lgnore income taxes.) $38,500 9,400 Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment 15 years Required rate of return 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. The...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore Income taxe $37.000 $ 8,000 Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return 15 years 105 The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial Inve Click here to view Exhibit78-1 and Exhibit 78-2. to determine the appropriate discount factors) using the tables provided The...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost of the equipment Annual cash savings Life of the machine $50,000 $15,000 8 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project. The payback period is closest to: Multiple Choice 3.33 years o 30 years o 8.0 years 8.0 years...
Most questions answered within 3 hours.
-
The free energy change for the following reaction at 25 °C, when
[Sn2+] = 1.17 M...
asked 1 hour ago -
An MNE is this kind of industry when competition in one country
is essentially independent of...
asked 2 hours ago -
. For this set of questions, determine what
proportion of a normal distribution is located betweeneach...
asked 3 hours ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 4 hours ago -
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 4 hours ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 4 hours ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 5 hours ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 5 hours ago -
IN PYTHON ONLY !! Program 2: Re-work
program #5 (WeeklyHours) from the previous assignment such that...
asked 6 hours ago -
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 7 hours ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 9 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 9 hours ago