Define payback period and modified payback period

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Discussion Question: Define payback period, net present value (NPV), profitability index, and modified payback period accompanied by equations for better clarity. State significance of each.

Assignment: a. Search Yahoo Finance or any other credible source to find the most recent income statement and balance sheet of a major corporation. Provide these statements in the appropriate format. Perform a vertical analysis and comment on your finding. Perform a financial analysis incorporating debt ratio, debt to equity ratio, return on assets, return on equity, current ratio, quick ratio, inventory turnover, days in inventory, accounts receivable turnover, accounts receivable cycle in days, accounts payable turnover, accounts payable cycle in days, earnings per share (EPS), and price to earnings ratio (P/E). Comment on your finding. Present your work in detail and explain. Provide references for content.

b. An individual obtains a car loan which pays $30,000. The loan will be paid off in 3 years, and payments are made monthly. Interest rate on the loan is 7%, and compounding is monthly. Find the amount of monthly payments to pay the loan off. Provide a complete amortization schedule of the loan (this will entail a long table containing 37 rows). Present your work in detail and explain. Provide references for content.

Reference no: EM132013293

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