An investment project provides cash inflows

Assignment Help Financial Management
Reference no: EM13885347

An investment project provides cash inflows of $875 per year for eight years. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16). Enter "0" if the payback period is never.)

What is the project payback period if the initial cost is $3,200?

What is the project payback period if the initial cost is $4,600?

What is the project payback period if the initial cost is $7,900?

Reference no: EM13885347

Questions Cloud

What is the internal rate of return on this project : Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of..
What is the term for this effect : Brian invested $1,000 five years ago and earns 4% interest per annum on his investment. By leaving the interest earnings in the account, he increases the amount of interest he earns each year. What is the term for this effect?
What is the interest rate per month for the loan : George bought a car for $26,500. He made a down-payment of $4,500 and financed the rest on a 5-year term with a monthly payment of $575. What is the interest rate per month for the loan? What is the nominal interest per year?
Impact the pure premium or risk premium : The Medical Loss Ratio provision of the ACA requires insurers to spend a minimum of 80% of premium dollars on claims and enrollee expenditures 20% of premium dollars can be allocated to administration, marketing, and profits. For this given policy, i..
An investment project provides cash inflows : An investment project provides cash inflows of $875 per year for eight years. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16). Enter "0" if the payback period is never.) What is the project payback period..
Approached to bid on a contract to sell voice recognition : Your company has been approached to bid on a contract to sell 3,900 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. Additionally..
Compute both the direct material cost and conversion cost : Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. Compute both the direct material cost and t..
Solar incorporateds stock to sell : Solar Inc. pays a current dividend of $2.50 per share annually. This dividend is expected to grow at the rate of 3.25% per year for the foreseeable future. Rating LLC has given Solar Inc. a beta score of 1.05. What price would you expect Solar Incorp..
What is the annual operating cash flow : Colors and More is considering replacing the equipment it uses to produce crayons. The equipment would cost $1.37 million, have a 12-year life, and lower manufacturing costs by an estimated $310,000 a year. The equipment will be depreciated over 12 y..

Reviews

Write a Review

Financial Management Questions & Answers

  Portfolio which is invested in stocks

You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset.

  Evaluate generation project with the cash flows

Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 –$43,000,000 1 67,500,000 2 –18,000,000 Required: (a) If the company requires a 11 percent return on its investments, what is the NPV o..

  Primary concerns should your firm make change to credit

In order to increase sales, the sales manager of your firm is proposing to offer 90 day credit terms rather than 60 day credit terms to customers. As a financial manager which of the following would be one of your primary concerns should your firm ma..

  What is the expected rate of return

A company’s preferred stock is issued it $25 with promised evidence of 3% of four. Current price of the stock is $61. What is the expected rate of return?

  Starbucks expansion is well documented in this case

Starbucks expansion is well documented in this case. Early in 2008 (and well before the widespread economic downturn) Starbucks began closing hundreds of stores across the U.S. Explain why you think this happened. Did Starbucks do anything “wrong” to..

  What is ratio of market value of equity to its book value

A firm has current assets that could be sold for their book value of $14 million. The book value of its fixed assets is $52 million, but they could be sold for $82 million today. The firm has total debt with a book value of $32 million, but interest ..

  What is the portfolio beta-stock portfolio

You own a stock portfolio invested 25 percent in Stock Q, 30 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .75, 1.13, 1.14, and 1.31, respectively. What is the portfolio beta? (Do not round ..

  Dividends per share are expected to grow

Company Z-prime’s earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends.

  What is the expected shortfall when the confidence level

Suppose that each of two investments has a 4% chance of loss of $ 10 million, a 2% chance that of loss of $1 million, and a 94% chance of profit of $1 million. What is the VaR for one of the investments when the confidence level is 95%? What is the e..

  Function of management based on structure of organization

Describe how the organization is structured. Include a copy of the organizational chart. Describe how managers perform the organization function of management based on the structure of the organization. Ensure one of the five types of structures as d..

  What must be the uniform annual sales volume of the product

Nadine Chelesvig has patented her invention. She is offering a patent manufacturer two contracts for the exclusive right to manufacture and market her product. Plan A calls for an immediate single lump payment to her of $35,000.

  What is the implied risk-free rate

The prices of European call and put options on a non-dividend-paying stock with 12 months to maturity, a strike price of $120,and an expiration date in 12 months are $25 and $5, respectively. The current stock price is $135. What is the implied risk-..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd