Calculate the projects discounted payback period

Assignment Help Financial Management

Reference no: EM131517237

A firm with a 9.5 percent cost of capital is considering a project for this year's budget. The project's expected after-tax cash flows are as follows:

Year: 0 1 2 3 4

CAsh flow: -$9,000 $3,800 $4,200 $4,300 $4,200

Calculate the project's discounted payback period:

A. 2.62 years

B. 2.00 years

C. 3.00 years

D. 2.50 years

E. 2.38 years

Reference no: EM131517237

Questions Cloud

What is the market’s estimate of the 3 year treasury rate : what is the market’s estimate of the 3 year treasury rate 2 years from now?

What are the deltas of a call option and a put option : What are the deltas of a call option and a put option with the following characteristics?

Crucial to the success of a spiritual organization : Trust and respect are crucial to the success of a spiritual organization. In some industries might unit prices (market prices) change often?

Higher interest expenses have on operating leverage : What effect do higher interest expenses have on operating leverage?

Calculate the projects discounted payback period : A firm with a 9.5 percent cost of capital is considering a project for this year's budget. Calculate the project's discounted payback period:

All-equity firm with estimated earnings : Jericho Snacks is an all-equity firm with estimated earnings before interest and taxes of $624,000 annually forever.

Annual continuously compounded rate of interest : If the stock is currently priced at $68.38, what is the annual continuously compounded rate of interest?

The project expected after-tax cash flows : A firm with a 13 percent cost of capital is evaluating two projects for this years capital budget. The project's expected after-tax cash flows are as follows:

Find the required rate for his stock : Find the required rate for his stock, assuming the future dividend growth rate will remain the same and the company has an infinite horizon.

User Account

All Pages