Calculate the simple payback period for this project

Assignment Help Business Management
Reference no: EM132579819

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%.

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

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

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

Reference no: EM132579819

Questions Cloud

Can gender be measured as a dichotomous variable : Is this an adequate measure of gender? What is the value of this scale? Can (and should) gender be measured as a dichotomous variable?
Prepare journal entries to record transactions for february : During February, the last month of the fiscal year, Prepare journal entries to record the transactions for February, March, and April.
What must be that investment today : If the foundation invests a lump sum today to fund all future scholarships. What must be that investment today? What is the PV of the scholarship?
Suppose purchase using credit card what option would choose : Suppose you can purchase it using your credit card, and unpaid credit card balances are charged 17% interest per year, what option would you choose?
Calculate the simple payback period for this project : Calculate the simple payback period for this project. Your desired payback period is 5 years. How long is the payback period for this project?
Which project would choose based on a discounting rate : Which project would you choose based on a discounting rate of 10% ?An MNC IT company based in Germany, named IT AG, has identified two mutually
Monthly repayments to the credit card company : How much would his monthly repayments to the credit card company be if he intended to pay out the debt over five years?
What ways is healthcare different from other industries : In what ways is healthcare different from other industries regarding diversity, and to what extent do these differences affect the marketing
Find the balance of provision for long service leave account : Find the balance of the Provision for Long Service Leave account for Adelaide Ltd as at 30 June 20X2, measured in accordance with the requirements of AASB 119.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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