Compute the payback period for product

Assignment Help Financial Management
Reference no: EM13951675

Compute the payback period for product X and product Y. Based on the payback period, which alternative would you select? (Assume a $200,000 investment)

Year                    Product X                 Product Y

1                            $60,000                     $40,000

2                              90,000                        70,000

3                              50,000                        80,000

4                              40,000                        20,000

Product X = _________________

Product Y =   _________________

Reference no: EM13951675

Questions Cloud

Describe how risk management can mitigate the risk : Write a 750-words paper in which you write of the scenario below. Describe how risk management can mitigate the risk in the scenario. How would you document the risk
Problem regarding the performance appraisal system : c) Often performance reviews do not achieve what they are intended to achieve. Explain to Petrawhat she needs to do to ensure performance reviews are effective, within the organisation. d) Explain how a performance appraisal system should link wit..
Find the smallest integer : The sum of four consecutive even integers is 2 more than five times the first integer. Find the smallest integer
Do you believe that html may have outlived its usefulness : HTML was the original Web page protocol, developed for hypertext documents on the emerging Web. Many different protocols and technologies have since been developed.
Compute the payback period for product : Compute the payback period for product X and product Y. Based on the payback period, which alternative would you select? (Assume a $200,000 investment)
Who should be involved in setting the standards : What standards could be set within each of the three production departments of the company? How should standards be set? Who should be involved in setting the standards?
Estimate the price per share of common stock : ABC Waterhouse's free cash flow next year will be $250 million and it is widely expected to grow at a 5 percent annual rate indefinitely. The company's weighted average cost of capital is 11 percent, the market value of its liabilities is $2.5 billio..
Developing a stakeholder analysis : To become more familiar with the project environment, you will conduct a stakeholder analysis. Use the following grid and information about each stakeholder to complete your analysis.
Manufactures leather using a factory : The following transactions occurred in a given year. Firm A manufactures leather using a factory valued at $20,000. Suppose Firm A produced $2,000 worth of leather and incurred the following costs: $1,000 for the salaries of workers, $100 for inte..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the value of abandonment option if discount rate

A project is worth $15 million today without an abandonment option. Suppose the value of the project is either $20 million one year from today (if product demand is high) or $10 million (if product demand is low). It is possible to sell off the proje..

  An insurance agent makes offer

An insurance agent makes this offer: If you pay him $50,000 today, we will pay you annual annuity payments of $5,000 for 15 years. If you can earn 5.13% on alternative investments, is this a good deal?

  Calculate families share of earnings

Juan, married and a father of 4 is 45 and expects to work until 65. he earns 70,000$ a year and expects an increase annually of 5%. Juan expects inflation to be 4% over his working life. His personal consumption is earl to 10% after tax earning and h..

  Firms marginal federal-plus-state tax rate

The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department The equipment's basic price is $190,000, and it would cost another $47,500 to modify it for special use ..

  Find the exact actual growth rate of your purchasing power

Over the past year you earned a nominal rate of interest of 9 percent on your money. The inflation rate was 2.5 percent over the same period. Find the exact actual growth rate of your purchasing power. Please show your work.

  About the sales increase

Maggie's Muffins, Inc., generated $4,000,000 in sales during 2013, and its year-end total assets were $2,600,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  What would be the weighted average cost of capital

What would be the weighted average cost of capital for Limp Linguini Noodle Makers, Inc. under the following conditions?

  Coupon bonds making semiannual payments

Backwater Corp. has 8 percent coupon bonds making SEMIANNUAL payments with a YTM of 7.2 percent and selling at $1060. How many years for these bonds have lefts until they mature?

  Compute the payback period and accounting rate of return

Compute the payback period and accounting rate of return for this equipment. (Record answers as percents, rounded to one decimal.)

  What will the stock price be in three years

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $9.72 per share on its stock. The dividends are expected to grow at a constant rate of 2.18 percent per year indefinitely. Investors require a return of 6.58 percent on the company's stock. ..

  Ebit and leverage

EBIT and Leverage. Kaelea, Inc., has no debt outstanding and a total market value of $125,000. Earnings before interest and taxes, EBIT, are projected to be $10,400 if economic conditions are normal. If there is strong expansion in the economy, then ..

  What is the after-tax WACC for the firm

A firm has $80 million in debt and 60% of its capital structure consists of common equity. The firm has no preferred stock. The firm’s bonds have YTM of 8.5%, and the firm is subject to a 30% corporate tax rate. The firm has common stock with a beta ..

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