User Account

All Pages

Compute the discounted payback statistic for project x

Assignment Help Financial Management
Reference no: EM131174693

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: -990 340 640 560 460 310

Reference no: EM131174693

Questions Cloud

What is market structure for wireless handset manufacturers : What is the market structure for wireless handset manufacturers? What pricing strategies do wireless phone handset manufacturers use? How do wireless phone makers attempt to differentiate their handset offerings?
Anti cancer drug avastin : Write a essay on the given topic "Anti-cancer drug bevacizumab (avastin)"
Find the beta of fir : find the beta of FIR.- Given these, Risk-free rate: 1.25% - Expected market return: 8.50% - Expected return on FIR stock: 9.00%.
Evaluate the plan effectiveness : Explain the target market and the objective of the marketing campaign. Analyze the elements of the campaign based on the 4 Ps of marketing (product, price, placement, promotion).
Compute the discounted payback statistic for project x : Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows.
Write a paper examining the roles of the legislative branch : Write a paper examining the roles of the legislative branch in health policy. Describe how this branch needs to relate to other stakeholders and assess where conflict between the stakeholders may and does occur.
Evaluate project by using the discounted payback decision : Suppose your firm is considering investing in a project with the cash flows- Use the discounted payback decision rule to evaluate this project; - should it be accepted or rejected?
Rotating about the x-axis the region : A solid is generated by rotating about the x-axis the region under a curve y = f(x), where f s a positive function. If the volume generated by the part of the curve from x = 0 to x = b is b 2 for all b > 0, find the function f(x).
What are the features of customer satisfaction : Discuss post-purchase dissonance, and the types of dissatisfaction responses. What are the features of customer satisfaction? Is relationship marketing a useful approach to increase satisfaction?

Reviews

Write a Review

Financial Management Questions & Answers

  How long will it be before your inheritance is worth

You have just inherited $560,000. You plan to save this money and continue to live off the money that you are earning in your current job. If you can invest the money in a bond that pays 5.46 percent interest annually, how long will it be before your..

  What is current value of the stock after paying the dividend

Company Alpha ltd has paid the following dividends during the last five years: 1.00 in the first year and 20% annual dividend growth for the subsequent years. If the required rate of return on the stock is 30%, what is the current value of the stock ..

  Good investment on an after-tax basis

Fleet Fleet rental car company purchased 10 new cars for a total cost fo $180,000. The cars generated income fo $150,000 per year and incurred operating expenses of $60,000 per year. The company uses MACRS depreciation and its marginal tax rate is 40..

  Bank required to report to potential borrowers

First Century Bank wants to earn an effective annual return on its consumer loans of 10 percent per year. The bank uses daily compounding on its loans. by law, what interest rate is the bank required to report to potential borrowers?

  The future earnings-dividends and common stock price

The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 5% per year. Carpetto's common stock currently sells for $21.00 per share; its last dividend was $2.40; and it will pay a $2.52 dividend at the ..

  Creates protective put position by buying one share of stock

An investor creates a protective put position by buying one share of a stock at $50 and buying a European put option on the stock with strike price $45 at $1.25. What is his profit if he holds his position until maturity of the option and the stock p..

  Financial leverage impacts the performance of the firm

Financial leverage impacts the performance of the firm by:

  Real rate of interest on short-term treasury bills

You observe that the current interest rate on short-term U.S. Treasury bills is 4.23 percent. You also read in the newspaper that the GDP deflator, which is a common macroeconomic indicator used by market analysts to gauge the inflation rate, current..

  Bonds foreign bonds are bonds sold by a foreign borrower

foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is

  Price of the stock according to the dividend discount model

A stock is expected to pay a dividend of $3 at the end of one year. After that dividends are expected to grow at the rate of 2% per year forever. The required return on the stock is 15%. What's the price of the stock according to the dividend discoun..

  Tax return claiming

Taylor and Jordan are married and file a joint tax return claiming their two children, ages 12 and 9 as dependents. Their AGI for 2014 is $100,000. Taylor and Jordan's child tax credit for 2014 is:

  Investment analysis and portfolio management

Compute the effect of this estimated change in inflation on the price of a 15-year, 10% coupon bond with a current yield to maturity of 8%.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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