Solution-What is cash payback period for project xr8

What is cash payback period for project xr8

Assignment Help Managerial Accounting

Reference no: EM13509253

Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below:

	Project XR8	Project AAA
Initial investment	$800,000	$1,200,000
Annual net income	40,000	84,000
Net annual cash inflow	200,000	284,000
Estimated useful life	5 years	6 years
Salvage value	0	0

The company requires a 10% rate of return on all new investments.

Present Value of an Annuity of 1

Periods	9%	10%	11%	12%
5	3.890	3.791	3.696	3.605
6	4.486	4.355	4.231	4.111

The cash payback period for Project XR8 is

10 years.

4 years.

5 years.

20 years.

Reference no: EM13509253

Questions Cloud

How high above the starting point does the pebble fly : You shoot a 47-g pebble straight up with a catapult whose spring constant is 310 N/m. How high above the starting point does the pebble fly

How much elastic potential energy is stored in the spring : The length of a spring increases by6.9cm from its relaxed length when a mass of1.7kg is hanging in equilibrium from the spring. How much elastic potential energy is stored in the spring

What is the speed of the sack : Sam pushes a 10.0-kg sack of bread flour on a frictionless horizontal surface with a constant horizontal force of3.0N starting from rest. What is the speed of the sack after Sam has pushed it a distance of10cm

Prepare a post-closing trial balance sheet : Debit entry for each of them separately and then make one credit entry in the total amount to the Income Summary account.

What is cash payback period for project xr8 : Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below.

Determine the total force on the spacecraft : A spacecraft in the shape of a long cylinder has a length of 100 m, and its mass with occupants is 1810 kg. Determine the total force on the spacecraft

Budgeted statement of retained earnings : Prepare a budgeted income statement and a budgeted statement of retained earnings for the year ended December 31, 2013, using absorption costing.

Calculate how fast is each sphere moving : A solid uniform sphere and a uniform spherical shell, both having the same mass and radius, How fast is each sphere moving when it reaches the bottom of the hill

Calculate the amount of accounts receivable : On November 10th, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600.00 in cash and put the balance on account.

User Account

All Pages

What is cash payback period for project xr8

Reference no: EM13509253

Reference no: EM13509253

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT