User Account

All Pages

Calculate the Payback Period and Net Present Value

Assignment Help Accounting Basics
Reference no: EM132825670

Question - The table below shows the expected annual cost and benefits of Project A that is expected to serve BlueMart for another 4 years after a 1 year of development program that was successfully completed recently.

Expected Benefits/Cost

Year 1

Year 2

Year 3

Year 4

Year 5

Expected Benefits

-

$150,000

$160,000

$170,000

$180,000

Cost

$200,000

$70,000

$80,000

$90,000

$100,000

Required -

1. Calculate the Payback Period, correct to 2 decimal places.

2. Calculate the Net Present Value (NPV), correct to 2 decimal places. The recent interact rate is 4.5%.

Reference no: EM132825670

Questions Cloud

How each would impact lifetime tour financial report : Assess the type of subsequent event and how each would impact Lifetime Tours' financial report for the year ended 30 June 2018, if at all.
Successful implementation of remuneration system : In implementing and developing a remuneration strategy, what roles the HR team are expected to perform
What spot price level of silver will a margin call occur : Suppose that you enter the initial margin is Rs. 4000 & the maintenance margin is Rs. 3000. At what spot price level of silver will a margin call occur?
Regulations impact compensation and benefits : How does labor laws and regulations impact employment, labor laws, and regulation?
Calculate the Payback Period and Net Present Value : The table below shows the expected annual cost and benefits of Project A that is expected to serve BlueMart, Calculate the Payback Period and Net Present Value
What are examples of statistical analysis tools : What are examples of statistical analysis tools used for forecasting and What role does statistical forecasting play in the quantitative health care decision an
How large is larry monthly mortgage payment : How large is Larry's monthly mortgage payment? After moving to Boston, Massachusetts, USA, Larry Winters borrowed $1,000,000
Make the journal entry for the exchange of similar assets : A computer server system, which had cost $210,000 and had accumulated depreciation. Prepare the journal entry for the exchange of these similar assets.
What is the? bond yield to maturity for tbq : TBQ has just issued a callable? (at par)? ten-year 5% coupon bond with annual coupon payments. What is the? bond's yield to maturity?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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