Investment project-what is the payback period

Assignment Help Financial Management
Reference no: EM131500414

An investment project costs $21,500 and has annual cash flows of $6500 for 6 years. If the discount rate is 15 perecent, what is the payback period? Show work.

Reference no: EM131500414

Questions Cloud

Major function within a manufacturing system : Define the quality concerns of each major function within a manufacturing system. How does each element contribute to overall quality and customer experience?
Discuss positive and negative aspect of deontological theory : Discuss the positive and negative aspects of deontological theory as it relates to another of the theories you have encountered in this course.
What is market rate of return if the stock : What is the market rate of return if the stock is currently selling for $49.10 a share?
Define the term continuous improvement : Define the term continuous improvement in a TQM context. Why might continuous improvement be difficult to measure?
Investment project-what is the payback period : An investment project costs $21,500 and has annual cash flows of $6500 for 6 years. If the discount rate is 15 percent, what is the payback period?
How you would analyze the situation to settle the issue : Research an article on a current event that centers on a controversial issue where the two sides are claiming opposing views. Then describe how you would analyze the situation to settle the issue
Social psychology and cultural applications : PSY-362:Do you think that kids from an urban working-class environment would have broken down emotionally in the same way as did the middle-class prisoners? Why
True negative indication and true positive indication : Fix Joe’s “True negative” indication at 70%, but let his “true positive” indication vary instead of being fixed at 85%.

Reviews

Write a Review

Financial Management Questions & Answers

  What kind of option has the payoff

What kind of option has the following payoff?

  What is the standard deviation of the portfolio

A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 40% and 30%, respectively, and the correlation between IBM and MSFT is -0.3. What is the standard deviation of the portfolio?

  Successful operation of grace kennedy group company

How have these financial management tools been used in the the successful operation of Grace Kennedy Group company.

  Stock analysis - calculate the required rate of return

The purpose of this project is to familiarize you with the stock market - calculate the required rate of return on your stock using CAPM:BAD 350- Managerial Finance

  Weight of each stock in the minimum variance portfolio

Consider two stocks, Stock D, with an expected return of 14 percent and a standard deviation of 26 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between th..

  Standard deviation of the rate of return on this investment

A project has a 0.52 chance of doubling your investment in a year and a 0.48 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment?

  Wide weighted average cost of capital for individual project

Explain the problem of using a firm-wide weighted average cost of capital for individual projects AND explain how you would estimate the discount rate for these projects.

  Straight-line depreciation to zero over six-year life

Which of the following securities is most liquid and has the least default risk? Consider a 6-year project with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 6-year life;

  How can you apply what you have learned

How can you apply what you have learned? Look at the financial statements or perform basic research on your current or previous employer.

  Yield to maturity remains at its current rate

A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 5 years from now?

  What is the invoice price of bond

A bond with a settlement date of April 30, 2013 and a maturity date of May 15, 2021 has a coupon rate of 6.7%. (bond equivalent yield, semiannual compounding), If the yield to maturity of the bond is 6.33%, what is the list price of the bond on the s..

  Equipment to produce cash flows

Kingston, Inc. management is considering purchasing a new machine at a cost of $4,129,832. They expect this equipment to produce cash flows of $821,407, $841,261, $853,835, $1,065,425, $1,134,239, and $1,296,663 over the next six years. If the approp..

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