The firm to recover its initial investment in this project

Assignment Help Financial Management

Reference no: EM131529216

EKG, Inc. is considering a new project that will require an initial cash investment of $419,000. The project will produce no cash flows for the first two years. The projected cash flows for Years 3 through 7 are $69,000, $98,000, $109,000, $145,000, and $165,000, respectively. How long will it take the firm to recover its initial investment in this project?

3.81 years

3.98 years

5.57 years

The project never pays back.

5.99 years

Reference no: EM131529216

Questions Cloud

Prices for european call options on the stock : A stock is currently trading at a price of 22. You observe the following prices for European call options on the stock (the strikes are in parentheses):

Determine terminal year after-tax non-operating cash flow : Determine the terminal year (in year 4) after-tax non-operating cash flow. What is the estimated Internal Rate of Return (IRR) of the project?

What are some of the key lessons you have learned : what are some of the things you know today that you would tell yourself? In other words, what are some of the key lessons you have learned?

Sketch the given function for the calues of t : Make a carefully labeled sketch for each of the following functions. Sketch case ? for values of 0 in the range 0 = ? = 6p.

The firm to recover its initial investment in this project : How long will it take the firm to recover its initial investment in this project?

Describing the important attributes of the company : Describing the important attributes of the company that should be considered when analyzing its consideration of social responsibility

Write a query to display average cost of books : Use the Ch08_Fact database shown in Figure P8.44. For problems with very large results sets, only the first several rows of output are shown in the following.

Using dividend growth model : Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today

What is the goal of managed health care : What is the goal of managed health care? What does it strive to do?What is the role of a primary care physician (PCP) in a traditional HMO?

User Account

All Pages