Question

Back to Assignment pical budgeting Attempts: Keep the Highest: /1 4. Problem 11.04 Click here to read the eBook: Payback Peri
0 0
Add a comment Improve this question Transcribed image text
Answer #1

6.25 years.

Since we are having uniform cash inflows the payback period will be = project cost / annual cash inflows

=>50,000/8,000

=>6.25 years.

Add a comment
Know the answer?
Add Answer to:
Back to Assignment pical budgeting Attempts: Keep the Highest: /1 4. Problem 11.04 Click here to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Back to Assignment Keep the Highest: 0/1 Attempts: 0 0 1. Problem 11.01 Click here to...

    Back to Assignment Keep the Highest: 0/1 Attempts: 0 0 1. Problem 11.01 Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $50,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 13%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

  • < Back to Assignment Attempts: 0 Keep the Highest: 0/1 9. Problem 11.13 Click here to...

    < Back to Assignment Attempts: 0 Keep the Highest: 0/1 9. Problem 11.13 Click here to read the eBook: Modified Internal Rate of Retum (MIRR) Problem Walk-Through MIRR A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: Project X Project Y $1,000 $1,000 $100 $900 $300 $90 $400 $50 $650 $50 The projects are equally risky, and their WACC IS 8%. What is the MIRR of the project that maximizes shareholder value7 Round...

  • 115 - The Basics of Capital Budgeting < Back to Assignment Q Search this course Attempts:...

    115 - The Basics of Capital Budgeting < Back to Assignment Q Search this course Attempts: 0 2. Problem 11.02 0 Keep the Highest: 1 x Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $40,955.09, its expected cash inflows are $9,000 per year for 10 years, and its WACC I 11. What is the project R answer to two decimal places. u nd you Continue without

  • ch 11: End-of-Chapter Problems - The Basics of Capital Budgeting Q Search Back to Assignment Attempts:...

    ch 11: End-of-Chapter Problems - The Basics of Capital Budgeting Q Search Back to Assignment Attempts: Keep the Highest: 11 1. Problem 11.01 Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 10%. What is the project's NPV? Round your answer to the nearest cent. Do not round your Intermediate calculations. Sare Cortina Continue without saving

  • Attempts: Keep the Highest: /1 1. Problem 11.01 Click here to read the eBook: Net Present...

    Attempts: Keep the Highest: /1 1. Problem 11.01 Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $35,000, its expected cash inflows are $15,000 per year for 10 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Grade It Now Save & Continue Continue without saving

  • < Back to Assignment Attempts: 0 Keep the Highest: 0/1 10. Problem 10.10 Click here to...

    < Back to Assignment Attempts: 0 Keep the Highest: 0/1 10. Problem 10.10 Click here to read the eBook: Basic Definitions WACC Olsen Outfitters Inc. believes that its optimal capital structure consists of 65% common equity and 35% debt, and its tax rate is 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $2 million of retained earnings with a cost of rs = 13%. New common stock in an amount up to $9...

  • Assignment 11 - The Basics of Capital Budgeting Back to Assignment Attempts: Average: 14 Attention: Due...

    Assignment 11 - The Basics of Capital Budgeting Back to Assignment Attempts: Average: 14 Attention: Due to a bug in Google Chrome, this page may not function correcty. Click here to learn more. 8. The NPV and payback period What information does the payback period provide? Suppose Omni Consumer Products's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5...

  • * CENGAGE MINDIA Ch 11: End-of-Chapter Problems - The Basics of Capital Budgeting < Back to...

    * CENGAGE MINDIA Ch 11: End-of-Chapter Problems - The Basics of Capital Budgeting < Back to Aliment Attempts: Keep the Highest: 1 2. Problem 11.02 Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $48,457.36, its expected cash inflows are $10,000 per year for 11 years, and its WACC is 99. What is the project's TAR? Round your answer to two decima Sam & Cane Continue without saving

  • 10 ildpter Problems - The Basics of Capital Budgeting Search this course < Back to Assignment...

    10 ildpter Problems - The Basics of Capital Budgeting Search this course < Back to Assignment Attempts: Keep the Highest: /1 9. Problem 11.13 Click here to read the eBook: Modified Internal Rate of Return (MIRR) Problem Walk-Through MIRR A firm is considering two mutually exclusive projects, X and Y With the following cash flows: Project X -$1,000 $110 $280 $400 $650 Project Y $1,000 $1,000 $110 $45 $45 The projects are equally risky, and their WACC is 13%. What...

  • Ch 10 Assignment- The Basics of Capital Budgeting Evaluating Cash Flows e Back to Assignment Attempts:...

    Ch 10 Assignment- The Basics of Capital Budgeting Evaluating Cash Flows e Back to Assignment Attempts: Average:/5 Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 9. The NPV and payback period Aa Aa What information does the payback period provide? Payback period essentially provides the number of years it would take for a project to recover the initial investment from its operating cash flows. As the model was criticized,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT