Considering project that will produce cash inflows

Assignment Help Financial Accounting

Reference no: EM131268080

Scott is considering a project that will produce cash inflows of $5,100 a year for 3 years. The project has required rate of return of 14 percent and an initial cost of $6,000. What is the discounted payback period?

1.39 years

.91 years

2.26 years

2.47 years

never

Reference no: EM131268080

Questions Cloud

Compute the internal rate of return for the project : Compute the net cash flow (cash receipts less yearly cash operating expenses) anticipated from the sale of the device for each of the 12 years. Include the start-up costs in year 0. Compute the internal rate of return (IRR) for the project using inte..

Used as base for common sized balance sheet analysis : The total assets dollar amount is typically used as a base for a common sized balance sheet analysis? In general, managers prefer expenses as a percent of net sales to increase over time?

Achievement for excellence in financial reporting : Review the Comprehensive Annual Financial Report (CAFR) that you obtained. What are three main sections of the report? Review the introductory section of the CAFR. Was the entity’s annual report of the previous year awarded a ‘‘certificate of achieve..

Focuses primarily on income statement information : Which of the following types of measures focuses primarily on income statement information?

Considering project that will produce cash inflows : Scott is considering a project that will produce cash inflows of $5,100 a year for 3 years. The project has required rate of return of 14 percent and an initial cost of $6,000. What is the discounted payback period?

Debit to equity ratio is for two companys in same industry : The following debit to equity ratio is for two companys in the same industry. Company A and Company Q. Debit to equity ratio 4.5 to 1, and 13.6 to 1. Which of the following statements is always true?

Which uses weighted-average process-costing system : Majestic, which uses a weighted-average process-costing system, adds materials at the beginning of production and incurs conversion cost evenly throughout manufacturing. determine the ending work-in-process inventory’s stage of completion (with regar..

Uses weighted-average process-costing system : Willingham uses a weighted-average process-costing system for its single product, which consists of Material X and Material Y. X and Y are introduced to the product as follows: The company completed 40,000 units during the period, and had an ending w..

What was the amount of pension plan assets at year-end : Pension plan assets were $320 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, retiree benefits paid by the trustee were $14 million and cash invested in the pension fund was $18 million. What was the am..

User Account

All Pages