Calculate the payback period for project a and b

Assignment Help Accounting Basics
Reference no: EM132729686

A firm has a WACC of 12.81% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.77. The additional cash flows for project A are: year 1 = $19.55, year 2 = $38.81, year 3 = $69.23. Project B has an initial investment of $72.74. The cash flows for project B are: year 1 = $53.26, year 2 = $48.15, year 3 = $23.66.

Problem 1: Calculate the Following:

a) Payback Period for Project A:
b) Payback Period for Project B:
c) NPV for Project A:
d) NPV for Project B:

Reference no: EM132729686

Questions Cloud

Calculate the npv for project z : Cash inflows of $26,094.00 at the end of each year for the next 15.0 years. The corporation has a WACC of 13.17%. Calculate the NPV for project Z.
Explain the purpose of the australian consumer law : 1. Explain the purpose of the Australian Consumer Law and how it protects consumers' rights.
Write an argument on euthanisa or mercy killing : Write an argument on Euthanisa or Mercy Killing. A paper in moral-ethical consist of at least six(6): (1) Introduction, (2) the presentation of the arguments.
Electronic health care records : Explain the differences between electronic health record implementation, adoption, and optimization.
Calculate the payback period for project a and b : A firm has a WACC of 12.81% and is deciding between two mutually exclusive projects. Calculate the Payback Period for Project A
How would you pick a management theory : How would you pick a management theory to apply as a manager?
Identify a shortcoming of quality management : Quality Management is a topic in operations management. How would you apply models and Knowledge into a real operations and supply chain job?
Reduce poverty in the united states : How can we reduce poverty in the United States? Will receiving a college degree improve your career opportunities?
Explain the impact of external and internal standards : Write a 700- to 1,050-word paper describing the process for tracking outcomes and improving quality and safety. Include the following in your paper.

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.

  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!

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