User Account

All Pages

Weaknesses of the payback period method

Assignment Help Finance Basics
Reference no: EM132412348

1. You are considering a project that has an initial outlay of $1million. The profitability index of the project is 2.24. What is the NPV of the project?

2. Identify the weaknesses of the payback period method.

3. Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project?

Reference no: EM132412348

Questions Cloud

Cost of equity-dividend growth : Summerdahl Resort's common stock is currently trading at $21.00 a share. The stock is expected to pay a dividend of $1.50 a share at the end of the year
Calculate the firm wacc adjusted for taxes : Calculate the firm's WACC adjusted for taxes using the market information in the table.
International Project Management Assignment : International Project Management Assignment Help and Solution, Berlin School of Business and Innovation - Assessment Writing Service - Promotion of the region
How a social worker should approach the diagnosis : Post a 300- to 500-word response in which you discuss how a social worker should approach the diagnosis. In your analysis, consider the following questions.
Weaknesses of the payback period method : Identify the weaknesses of the payback period method.
What is the corporate tax rate : Timpano's equity market value is $850 million and its debt is kept constant at $950 million. What is the corporate tax rate?
Define the concepts of spectrum and dimensionality : Briefly describe what the DSM-5 is and how it is organized. In your description, define the concepts of spectrum and dimensionality as explained by Paris.
Increase at an annual inflation rate : This is a challenging question. Please allocate time wisely.) Cipro Milda is planning a college fund for her child. When the child joins college in 15 years
Describe issue including your recommendations for change : Research the evolution of the issue/social problem from it's emergence to the present. This will require an assessment of the current situation and a review.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the required rate of return on equity using equat

Calculate the required rate of return on equity using equation: rs = rRF + RPM(b). Calculate weighted average cost of capital, using equation: WACC = Wdrd(1-%) + wsrs. Calculate the value of operations, using equation: Vops = FCF0 (1+g)/WACC - g)

  Coefficient of determination and coefficient of correlation

Calculate the coefficient of determination and the coefficient of correlation between X and Y. Interpret the coefficient of Determination.

  Sensitivity of ocf to changes in quantity sold

Consider a 5 year project with an initial fixed asset investment of $350,000 straight-line depreciation to zero over the project's life, a zero salvage value

  Electronics with printed circuit and motherboards

BUYU Manufacturing has been contracted to provide SAEL Electronics with printed circuit and motherboards (PC) boards under the following terms:

  Suppose a portfolio consists of four assets the risk

suppose a portfolio consists of four assets. the risk contribution of each asset is as follows uk large cap 3.9 uk

  What is the average defection rate for grocery store

what is the average defection rate for grocery store shoppers in a local area of a large city if they spend 50 per

  Amazon from disclosing information

What are the costs and benefits to Amazon from disclosing this information? What issues does this change raise for the auditor? What additional tests would you want to conduct as Amazon's auditor?

  Make additional deposits into the account

Jan Murphy deposits $24,800 in the La Grange Community Bank today, and will not make additional deposits into the account (this is not an annuity problem).

  If it is found that 20 of 200 adult women in the urban

an urban community would like to show that the incidence of breast cancer is higher than in a nearby rural area. pcb

  Why a multinational corporation might decide to borrow

From the e-Activity determine key reasons why a multinational corporation might decide to borrow in a country such as Brazil

  Capital budgeting

Capital budgeting You will be providing some critical depth of comment supported by quality academic references that discuss both the practical and theoretical aspects of investment appraisal and other aspects as you see relevant.

  Compute the present value of an annuity

Compute the present value of an annuity of $ 750 per year for 19 years, given a discount rate of 10 percent per annum. Assume that the first cash flow will occur one year from today

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd