Expected cash inflows

Assignment Help Financial Management
Reference no: EM131354508

Payback period

Project L costs $65,000, its expected cash inflows are $13,000 per year for 6 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

years

Reference no: EM131354508

Questions Cloud

Celebrities raise money by issuing bonds to investors : With celebrity? bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of? 2009, EMI announced that it intended to securitize its back catalogu..
What would be the beta of your resulting investment : You have $20000 to invest in the stock market and you want to buy 1000 shares of spurs inc., which is trading at $30 per share and has a beta of 1.3. Assuming that you can buy on margin at the risk free rate from your broker, what would be the beta o..
Expected cash inflows : Project L costs $65,000, its expected cash inflows are $13,000 per year for 6 years, and its WACC is 10%. What is the project's payback?
Capital structure weight of equity on market value basis : Filer Manufacturing has 8.6 million shares of common stock outstanding. The current share price is $48, and the book value per share is $4. Filer Manufacturing also has two bond issues outstanding. What is Filer's capital structure weight of equity o..
Under what circumstances will the put option be exercised : Suppose that a European put option to with a strike price price of $70 costs $5 and is held until expiration. Under what circumstances will the put option be exercised? Under what circumstances the seller of the put option make a profit?
Capital structure consists solely of debt-common equity : Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common stock currently pays a $3.25 dividend per share (D0 = $3.25). The stock's price is currently $21.25, its dividend is expected ..
What is its cost of common equity : The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan's common stock currently sells for $26.25 per share; its last dividend was $1.80; and it will pay a $1.89 dividend at the ..

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