How much extra money beyond the initial investment

Assignment Help Financial Accounting
Reference no: EM132937963

Suppose a company had an initial investment of $50,000. The cash flow for the next five years are $14,000, $11,000, $12,000, $10,000, and $14,000, respectively.

Problem 1: In which year will the company recover its initial investment? (Enter only whole numbers)

Problem 2: How much extra money beyond the initial investment will the company earn in that year?

Problem 3: What is the payback period?

Reference no: EM132937963

Questions Cloud

Will the project be accepted : What is the discounted payback period? If the firm requires a discounted payback periods 3 years or less, will the project be accepted?
Prepare the adjusting entry necessary : A physical count of inventory determines that merchandise inventory on hand is 12, 920. Prepare the adjusting entry necessary as a result of the physical count
Create a delta-gamma-neutral portfolio : A call option (Z) is available with 100 shares as the underlying asset and has Delta=0.6 and Gamma=1.5. Create a delta-gamma-neutral portfolio
Discuss how free cash flow computed : Discuss how free cash flow computed affects the future earnings and financial condition of your company (Comment NOT more than 10 lines)
How much extra money beyond the initial investment : Suppose a company had an initial investment of $50,000. How much extra money beyond the initial investment will the company earn in that year?
What the rates of return is this bond : The bond will be redeemed in five years' time and is currently trading at 103.50. Which of the following rates of return is this bond offering investors
What are the four characteristics of mapping rules : What are the four characteristics of mapping rules? Which of the four data types corresponds to the possible combinations of these characteristics
Find the yield to maturity for a ten-year : Find the yield to maturity (YTM) for a 10-year, 5% annual coupon rate, $1,000 par value bond if the bond sells for $918 currently?
Should red lotus make an s election : Estimated income is $40,000 for 2021 and $25,000 for each of the next three years. Should Red Lotus make an S election for 2021? Why or why not

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much will she have to invest today

If Sarah can invest in a fund that pays 6.40 percent annual interest, compounded quarterly, how much will she have to invest today

  What would the net income reported on comparative financial

What would the net income reported on comparative financial statements issued at 12/31/22 be for the years 2019, 2020, and 2021?

  Business is the collecting of receivables

One of the most important functions in a business is the collecting of receivables. Collections, in its most basis form, is done from the accounts receivable aging

  What was the materials quantity variance for the month

The following data pertain to operations concerning the product for the last month: What was the materials quantity variance for the month

  Ethyl corporation and afton chemical corporation

New Market was formed from a merger of Ethyl Corporation and Afton Chemical Corporation

  Explain how the double-declining-balance method is computed

Explain how the double-declining-balance method is computed. Provide an example of how this method could be used on the new delivery truck purchased for $300,000 to be used for 4 years with a salvage value of $5,000 for year one only.

  Describe specific costs that are relevant to the decision

Describe 2 specific costs that are relevant to the decision whether to expand or not, and 2 specific costs that are irrelevant to the decision

  The customer paid in cash for the work completed

Service and installation work were completed on a customer's jet ski personal watercraft and the customer paid in cash for the work completed. The sales invoice lists 156 for 2.4 hours of labor, 421.40 for accessories, and 8% sales tax on the total.

  Write up the research and development

Write up the research and development, fixed asset and market research accounts to reflect the above transactions in the year ended 31 January 20X2.

  How many monthly payments will be made to pay off the loan

How many monthly payments will be made to pay off the loan? To repay a loan of $7000, Krista must make month-end payments with 2.9% interest compounded

  What is the current share price of metallica bearings inc

Metallica Bearings, Inc., is a young start-up company. If the required return on this stock is 8 percent, what is the current share price?

  Effect of accepting the special order

The effect of accepting the special order on Melville's operating income next year - economically indifferent between accepting or rejecting the special order from Mowen?

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