Calculate the simple payback period for the project

Reference no: EM132394321

Assignment: Deal or No Deal?

Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the purchase price is $240,000. The net cash flows for the project are $30,000 per year for the next 5 years. You plan to borrow the money for this investment at 5%.

1. Prepare a net present value calculation for this project. What is the net present value of this project?

2. Calculate the simple payback period for this project. Your desired payback period is 5 years. How long is the payback period for this project?

3. Is this a good investment? What would be a good price at which to purchase this business?

Submit an Excel spreadsheet which must include the answers to all 3 questions: 1) A Net Present Value calculation, 2) a Simple Payback Period calculation, and 3) the answer to question regarding whether this is a good investment and what the best price should be.

Deliverable Length: 1 Excel spreadsheet with answers to all questions.

Reference no: EM132394321

Questions Cloud

How can you use c in situations in your personal life : Utilizing the company that you work for or a company that you are familiar with, name one of the 5 Cs of credit, and discuss how it would come into play in the.

What are the organization goals for the given year : What are the organization's goals for this year? How will the staffing plan align to the organization's goals? In other words, how will this plan help.

FINA310 Financial Management Assignment Problem : FINA310 Financial Management assignment help and solutions, American InterContinental University, assessment help - Utilizing the fictitious company Tag-It.

Compose viably or secure the essential math aptitudes : Compose viably or secure the essential math aptitudes such huge numbers of us underestimate,

Calculate the simple payback period for the project : Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building).

Ignorance versus knowledge and freedom versus happiness : Explore Ignorance versus Knowledge and Freedom versus Happiness in Plato's Allegory of the Cave.

Significant legal-ethical issues facing program facilitators : What are most significant legal and ethical issues facing program facilitators? Where can professionals look for guidance when confronted with these situations.

What are the main purposes of correctional programs : What are the main purposes of correctional programs? How do they benefit individuals involved in the correctional system and the community?

Challenges facing major religious traditions in modern world : What are some of the challenges facing major religious traditions in the modern world?

User Account

All Pages