Discounted payback statistic for project

Assignment Help Financial Management
Reference no: EM131850142

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 14 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.   

Time:    0    1 2    3 4 5 6   

Cash Flow: -1,010    110 490    690 690 290 690

Use the NPV decision rule to evaluate this project; should it be accepted or rejected?

Reference no: EM131850142

Questions Cloud

Your firm is considering two mutually exclusive : Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below.
Discounted payback statistic for the projects : The maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively.
What is the npv of replacement : Should your company replace its year-old machine? What is the NPV of replacement?
What is the bond price in dollars : The financial press reports the price of a corporate bond as 103.48. What is the bond's price in dollars?
Discounted payback statistic for project : the required rate of return on projects of this risk class is 14 percent, and that the maximum allowable payback and discounted payback statistic for project
Firm is considering investing in project with the cash flows : Suppose your firm is considering investing in a project with the cash flows shown below,
What is the maximum price per share belmont : What is the maximum price per share Belmont Co. should pay for Cilla Co. based on the following data for Cilla: PV of future cash flows $900 million,
Show amortization schedule : click on the "Show Amortization Schedule" button to view the monthly amortization table for this mortgage.
Purchase your dream harley davidson : If you need to borrow $9.300 to purchase your dream harley davidson, what will be your monthly payment?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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