Reference no: EM131065755
Highfield Co. is considering a project that will require an initial cash outlay of $78,120 today. The project has a five-year life and will generate cash flows of $20,608 every year for next five years. The required rate of return is 15%. What is the payback period? a. 4.6218 b. 2.8706 c. 3.9349 d. 3.7908
B. Given the information in Question 1, what is the net present value? a. $9,038.79 b. -$9,038.79 c. $3,790.80 d. $7,812.03
C. Given the information in Question 1, what is the internal rate of return? a. 10% b. 8% c. 6% d. 12%
D. Given the information in Question 1, what is the profitability index? a. 1.8843 b. -0.8843 c. 0.8843 d. -1.8843
E. Given the information in Question 1, what is the maximum price that Highfield has to pay if the target profitability index is 1.2? a. $65,248.13 b. $82,098.45 c. $78,120 d. $57,567.68
F. Given the information in Question 1, what is the minimum annual cash flow that project has to generate in order to accept the project? a. $20,608 b. $23,304.41 c. $22,403.52 d. $19,376.93
|
Determine the probability distribution missing value
: Determine the probability distribution's missing value. The probability that a tutor will see 0, 1, 2, 3, 4, 5, 6, 7 or 8 students on a given day
|
|
Create an argument in agreement or disagreement
: Create an argument in agreement or disagreement that the creation of the PCAOB has been effective with improving the reliability of audited financial statement for the public users of the information. Provide support for your position.
|
|
Determine the joint probability of each scenario
: Incorporating Country Risk in Capital Budgeting How could a country risk assessment be used to adjust a project's required rate of return? How could such an assessment be used instead to adjust a project's estimated cash flows?
|
|
Strengths and flaws in the feedback control system
: What do you see as the major strengths and flaws in the feedback control system used in the schools in this scenario? What changes do you recommend to overcome the flaws?
|
|
Considering a project that will require initial cash outlay
: Highfield Co. is considering a project that will require an initial cash outlay of $78,120 today. The project has a five-year life and will generate cash flows of $20,608 every year for next five years. Given the information in Question 1, what is ..
|
|
An overview of the accounting software sap
: Identify key features of and use screen shots (or demos) to discuss these features. Discuss the system requirements in terms of users training and requirements, ICT support, implementation timeframe, maintenance and costing requirements
|
|
Problem regarding the trending now
: "Trending Now" Watch the video below and then respond to the questions that follow
|
|
Explain the importance of education and health
: explain the importance of education and health in developing countries.
|
|
Determine marginal cost of capital schedule
: You develop the following information. Your firm has a target capital structure of 80% common equity, 5% preferred stock and 15% debt. The firm’s tax rate is 25%. The firm can issue up to $225,000 worth of debt at a before-tax cost of 10%. Then it wi..
|