Compute the discounted payback statistic for project

Assignment Help Financial Management
Reference no: EM131179061

Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is 3 years. Time: 0 1 2 3 4 5 Cash flow: -990 390 590 510 410 260 2.75 years, accept 2.43 years, accept 4.75 years, reject 3.43 years, reject

Reference no: EM131179061

Questions Cloud

Linear and integer programming modeling : Submit a six to eight-page paper (not including the title and reference pages) on one of the major topics listed below. Incorporate at least two related scholarly sources:
Critically evaluate how service quality models can be useful : Critically evaluate how service quality models can be useful in sustaining customer relationships. Illustrate your answers with examples from commercial business situations
Find the equilibrium price and quantity in the market : The market for a good has a demand curve given by: P = 100 - 2Q, And a supply curve given by: P = 10 + Q,  Find the equilibrium price and quantity in the market
How many partial functions are there from a set : How many partial functions (see Definition 13 of Section 2.3) are there from a set with m elements to a set with n elements, where m and n are positive integers?
Compute the discounted payback statistic for project : Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 11 percent and the maximum allowable discounted payback is..
Explain your reasoning using marketing principles : Develop a strategy for attracting the target audience to the selected business and explain your reasoning using marketing principles and sound marketing concepts. As part of this strategy, select one of the segments you identified as the main targ..
Understanding of the poisson and negative exponential : Please use your understanding of the Poisson and negative exponential probability distributions toaddress the following 1. What is the probability that no customers enter the teller system during a 3-minute periodbetween 3:00 P.M. and 4:00 P.M.? Fi..
Tax consequences to a and b from the first year of operation : Create AB partnership's balance sheet as of formation on January 1, 2015 in including partners' basis and capital accounts.-
What are the equilibrium price of brazilian coffee beans : Below is the graph of the domestic Supply and Demand (Graph 2.a.) for Brazilian Coffee beans. From the supply and demand schedules above, what are the equilibrium price and quantity of Brazilian Coffee beans?

Reviews

Write a Review

Financial Management Questions & Answers

  What are the equity value and debt-to-value ratio

Edwards Construction currently has debt outstanding with a market value of $90,000 and a cost of 11 percent. The company has EBIT of $9,900 that is expected to continue in perpetuity. Assume there are no taxes. What is the value of the company's equi..

  What is the current price of the bond

Deng Inc. has a target debt-equity ratio of 0.4. It’s before-tax  cost of equity is 16 %  and it’s before-tax cost of debt is 8%. If the tax rate is 32%, what is Deng’s WACC?

  Treasury bond rate-derive stock price of this company

We have the following information for the company. The stock pays a $10 dividend, and it will grow by 100% the first year, 30% the second year and 3% forever after that. The unlevered beta is 1, D/E is 60/40 and the tax rate is .3. Additionally, we k..

  After supply and demand for the japanese yen

The inflation rate in the U.S. is 4%, while the inflation rate in Japan is 1.5%. The current exchange rate for the Japanese yen (¥) is $0.0080. After supply and demand for the Japanese yen has adjusted according to purchasing power parity, the new ex..

  Computer-based order entry system

Your firm is contemplating the purchase of a new $540,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $52,000 at the end of that time. You will save $300,000 before..

  Companies raise long-term funds or capital for new projects

Companies raise long-term funds or capital for new projects through which of the following markets? The federal reserve is the governmental organization responsible for______. An increase in the value of the dollar relative to all foreign currencies ..

  Determine the expected price for common stock

Simon Enterprises current common stock dividend (year 0) is $2.50 per share and is expected to continue growing at a rate of 5% per year for the foreseeable future. Currently the risk-free rate is 7.5% and the estimated market risk premium (i.e., km ..

  Consider bear spread strategy

Consider a bear spread strategy using Augsut 160 and 170 calls. What is the maximum possible loss per one option?

  Economic order quantity-current inventory policy

Viking Manufacturing, Inc. currently begins each sales cycle with 12,500 vacuum cleaners in stock. This stock is depleted at the end of each sales cycle and then reordered. What is the total cost of current inventory policy? What is the restocking co..

  Assets decrease and owners equity decreases

On July 1, 2012, Watson Company received a $20,000 promissory note for services from Jeffs Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2013. Assets decrease and owners' equity decr..

  Specialty shop in local mall currently has lease

A specialty shop in a local mall currently has a lease that calls for payments of $1,000 at the end of each of the next 60 months. The landlord has offered a new 5-year lease that calls for zero rent for 6 months, then rental payments of $1,050 at th..

  What would the annual yield to maturity be on the bond

Fresh Fruit, INC. has a $1000 par value bond that is currently selling for $911. It has an annual coupon rate of 11.70 %, paid semi annually, and has 28-years remaining until maturity. What would the annual yield to maturity be on the bond if you pur..

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