Find traditional payback period for intial investment

Assignment Help Financial Management
Reference no: EM131917947

1. Find the traditional payback period for an intial investment of $110,000 with cash flows of 25,000 for 5 years. Should the project be purchased?

2. Albert Pizza purchased new machinery for $150,000. It cost $10,000 to ship the machinery and it cost another $8,000 to get it installed. Using the MACRS 5 year class, what is the depreciation for years 4?

Reference no: EM131917947

Questions Cloud

Compute new price and percentage price change for each bond : Compute the new price and the percentage price change for each bond if the term structure instantaneously shifts from 5% to 4.5%.
Consider a 10-year zero coupon bond. : Consider a 10-year zero coupon bond. Assuming the yield-to-maturity is 5%, compute the bond’s modified duration.
Capital budgeting project is purchased-firm value : If a capital budgeting project is purchased, a firm's value, and thus its stockholders' wealth, will increase by the amount of the project's _____.
What is the net present value of the loan : What is the net present value of the loan to TTC if the firm’s tax rate is 34 percent and it accepts the county’s offer?
Find traditional payback period for intial investment : Find the traditional payback period for an intial investment of $110,000 with cash flows of 25,000 for 5 years.
Multiple internal rates of return from the project : determine the multiple internal rates of return from the project. determine the duration of the project.
What is expected return on equity : what is the expected Return on Equity?
Which no arbitrage opportunity exists : Find the values of c for which no arbitrage opportunity exists (for what values of c does a solution to the system exist?).
Determine variable factory overhead controllable variance : Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the effective annual yield

Bourdon Software has 12 percent coupon bonds on the market with 16 years to maturity. The bonds make semi annual payments and currently sell for 108.8 percent of par. What is the current yield on the bonds? What is the YTM? What is the effective annu..

  Mortgage with simple annual interest rate

You have a 10-year mortgage with a simple annual interest rate of 8.5 percent. The monthly payment is $1,000. What percentage of your total payments over the first three years goes toward the repayment of principal?

  Determine what the dividend payout ratio must be

Determine what the dividend payout ratio must be. How do you interpret the result?

  Maths of finance-business finance and accounting

explain which topic of finance you will be using. i.e maths of finance, business finance, accounting, financial statement analysis, working capital, budgeting,

  What is the sum of the market value of NWC

What is the sum of the market value of NWC and the market value of fixed assets?

  What are average and marginal tax rates on taxable income

The Dakota Corporation had a 2015 taxable income of $33,500,000 from operations after all operating costs but before (1) interest charges of $8,600,000; (2) dividends received of $760,000; (3) dividends paid of $5,300,000; and (4) income taxes. What ..

  Assuming that growth is to be constant

show the current stock value and next year's expected stock value, assuming that growth is to be constant.

  What would be the expected price of ups stock on this date

Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial managers?

  What will be the interest rates on three-year bond

What will be the interest rates on a 3-year bond, 4-year bond, and 6-year bond?

  Analyze the types of bonds chosen company issues

Analyze the types of bonds the chosen company issues, and make a recommendation to the investor as to which type of bond would provide most value.

  Compute the maximum change in total deposits

Compute the maximum change in total deposits that would result if deposits at financial institution were initially decreased by $120 billion and the reserve requirement applicable to all deposits was.

  Project has positive npv at company

A mining company wishes to start up a new small gold mine. The project has a positive NPV at the company's 10.25% cost of capital.

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