Find the projects simple regular payback

Assignment Help Finance Basics
Reference no: EM1351292

The ABC Corporation is considering a project which has an up-front cost paid today at t = 0. The project will generate positive cash flows of $70,000 a year at the end of each of the next five years. The project's NPV is $90,000 and the company's WACC is 12 percent. What is the project's simple, regular payback?

Reference no: EM1351292

Questions Cloud

Explain how and why a monopoly would try to price : Q. Explain how and why a monopoly would try to price discriminate. Serving food on weekdays to business people and retired people.
Compute the expected return and variance : Given the information below, compute the expected return, variance, and standard deviation of the following company.
Determining auditing and assurance services : Knowing that my company 2007 audit will include attestation services, I want to know more about what attestation services encompass and what my team and I can do to prepare for this service.
At what price does it sell these units : Suppose that MC=4q, where MC is marginal cost. The perfectly competitive firm maximizes profits by producing 10 units of out output. At what price does it sell these units.
Find the projects simple regular payback : The ABC Company is planning a project which has an up-front cost paid today at t = 0. The project will create positive cash flows of $70,000 a year at the end of each of the next 5 years.
Adjusting workflow - intercultural management : What is meant by the need to adjust to the flow of the workday and how does this apply to doing business in Central and South America?
How will this technological advance impact production : How will this technological advance impact production and pricing plans. How it will impact BlackSpot's profit.
Use a performance map to clarify expectations : What might have gone differently, if you had been able to use a Performance Map to clarify expectations?
Demonstrate using supply and demand analysis : Demonstrate, using supply and demand analysis, the effect on the equilibrium price and quantity of new hybrid automobiles when the following occurs.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial management

Define each term given below and identify their roles in finance. Finance, Efficient market, Primary market,  Secondary market.

  Calculation of operating income and ebit

Calculation of operating income, EBIT and dividend per share - What was the firm's operating income, or EBIT and What dividend per share should the company declare

  Dividend growth model or capital asset pricing model

Do you feel that the Dividend Growth Model or the Capital Asset pricing Model is more accurate in determine the cost of a firm's common equity? Defend your answer.

  Find company cost of capital

A firm is 40% financed by risk-free debt. The interest rate is 10 percent, the expected market risk premium is 8 percent, and the beta of the company's stock is .5.

  Compute of cost of capital

Compute of cost of capital and Calculate the cost of capital for the funds needed to meet the expansion goal and The firm expects to generate enough internal equity to meet the equity portion of its expansion needs.

  Company valuation methods

Make a valuation analysis for intrinsic value of GE stock. The analysis must incorporate CAPM and single-stage DDM. Refer to "Key Statistics" in the Yahoo site for additional model variable values such as beta.

  Describe what is the value of the firm

Find what will the value be if Corrado converts to 50% debt and evaluate what will the value be if Corrado converts to 100% debt?

  What is stock valuation under equilibrium situation

What is Stock valuation under equilibrium situation and Assuming the stock market is efficient and the stocks are in equilibrium

  Describe tax liability on dividend income

Describe tax liability on dividend income, interest income and interest on loan paid and Excluding the items noted above, Redbird's taxable income is $500,000

  Discuss on to issue of new debt and break even analysis

Discuss on to issue of new debt and break even analysis and what does it imply regarding whether or not the firm should go ahead with the new debt issue

  Question about saving for retirement

How much must you save each year between now and retirement to achieve your goal? If the rate of inflation turns out to be 6% per year between now and retirement, how much will your first $8000 withdrawal be worth in terms of today's purchasing po..

  Describe sox requirements

Describe SOX requirements

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