The project will produce cash inflows of 9000 a year for

Assignment Help Finance Basics
Reference no: EM13572239

ANderson Inc. is considering a project with an initial cost of $28,000. The project will produce cash inflows of $9,000 a year for the first year and $10,000 a year for the following three years. What is the payback period?

i) 2.31 years
ii) 2.47 years
iii) 2.90 years
iv) 3.10 years
v) 3.34 years

Reference no: EM13572239

Questions Cloud

Define and describe the concept of socio ecological : define and describe the concept of socio ecological determinants of health and discuss why this is an important aspect
A firms bonds have a maturity of 10 years with a 1000 face : a firms bonds have a maturity of 10 years with a 1000 face value an 8 percent semiannual coupon are callable in 5
What are some perspectives and emphases within cognitive : 1. what are some perspectives and emphases within cognitive psychology that are currently affecting educators thinking
There are two principal methods of presenting cash flow : there are two principal methods of presenting cash flow from operating activities - the direct method and the indirect
The project will produce cash inflows of 9000 a year for : anderson inc. is considering a project with an initial cost of 28000. the project will produce cash inflows of 9000 a
Bank of america has bonds which have a 10-year maturity a : bank of america has bonds which have a 10-year maturity a 6.25 semiannual coupon and a par value of 1000. the going
How has your understanding of the concept of : to writeyou will compose an academic professional narrative essay that answers the following questions. the essay
The zombie corporations common stock has a beta of 16 if : the zombie corporations common stock has a beta of 1.6. if the risk-free rate is 4.7 percent and the expected return on
A neighbor of your deposited 7500 in a local bank account : a neighbor of your deposited 7500 in a local bank account that pays 3.75 with daily compounding and a 360-day year.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the maximum debt ratio the firm can use

It can borrow at a rate of 7.5%, but the bank requires it to have a TIE of at least 4.0, and if the TIE falls below this level the bank will call in the loan and the firm will go bankrupt. What is the maximum debt ratio the firm can use?

  Explain why sunk costs should not be included in a capital

Explain why sunk costs should not be included in a capital budgeting analysis but opportunity costs and externalities should be included. Give an example of each.(briefly)

  By how much does the required return on the riskier stock

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an adverage stock is 15 percent, and the risk-free rate of return is 9 percent.

  You now receive another 500 million which you invest in

assume that you manage a 10.00 million mutual fund that has a beta of 1.05 and a 9.50 required return. the risk-free

  Project one will be using the verizon (vz) stock

Project one will be using the Verizon (VZ) Stock

  If the appropriate discount rate is 10875 percent what is

present value with multiple cash flows saul cervantes has just purchased some equipment for his landscaping business.

  Detemine the price for each mri scan

The Sans Roentgen Outpatient MRI Center has asked you to detemine the price to be charged for each MRI scan for the first year of operations. Below is the relevant budget information:

  What are the two most popular database vendors in the

1. what are the two most popular database vendors in the marketplace?2. what are the pros and cons of each vendor?3.

  What is the value of the erosion

Class C spas are priced at $6,000 and the deluxe model sells for $17,000 each. The new mid-range spa will sell for $8,000. What is the value of the erosion?

  What rate of return are investors expecting

Assume that earnings and dividends are expected to grow at 7.5% in perpetuity. What rate of return are investors expecting?

  Calculate for alice the total cash value of the annuity

Alice Longtree has decided to invest $400 quarterly for 4 years in an ordinary annuity at 8%. As her financial adviser, calculate for Alice the total cash value of the annuity at the end of year 4.

  Financing mergers and acquisitions

Think about the Textron Inc., and the possibility of it merging with Boeing Inc., Write a two to three page paper answering given questions:

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