What is discounted payback period

Assignment Help Financial Management
Reference no: EM131863114

An investment project costs $10,000 and has annual cash flows of $2,600 for six years. (Enter 0 when there is no payback period. Round your answers to 2 decimal places. (e.g., 32.16))

Required: (a) What is the discounted payback period if the discount rate is 8 percent? Discounted payback period years (b) What is the discounted payback period if the discount rate is 12 percent? Discounted payback period years.

Reference no: EM131863114

Questions Cloud

How do you change the culture : Deerborn Electronics scenario, a mutlinational firm providing parts for mobile devices where the employees are not held accountable for their lack of work.
Annual effective interest rate : A 30 yuear annuity is arrnaged to pay off a loan taken out today at a 5% annual effective interest rate.
What is maximum price investor could pay for the property : What is the maximum price the investor could pay for the property before debt financing has a neutral effect on the equity cash yield?
What are the core capabilities of amazon and google : Define a "core capability." What are the core capabilities of Amazon, Google, and Walmart? List some new markets to which these companies could creatively.
What is discounted payback period : What is the discounted payback period if the discount rate is 12 percent? Discounted payback period years.
Why do people form coalitions : Define coalitions in your own words. Why do people form coalitions? Give an example of a coalition and its purpose from your own personal or professional life.
Continuous payments with the annual rate of payments : A perpeuity provides continuous payments with the annual rate of payments of 1 if t is less than 10, and then 1.05^t if t is greater or equal to 10.
What is the lifetime customer value : What is Lifetime Customer Value (also referred to as "Customer Lifetime Value") and why is it such an important business concept?
Which of these two taxes is more consistent : Which of these two taxes is more consistent with the benefits-received principle? Why?

Reviews

Write a Review

Financial Management Questions & Answers

  Expected growth rate in dividends per year

Hank Corp.'s common stock currently sells for $24 per share. The most recent dividend (Do) was $2.49, and the expected growth rate in dividends per year is 7%.

  Firm of new product with high net present value

If the market is fully efficient, then an announcement by a firm of a new product with a high net present value will cause the market price of that firm's stock to:

  Reported net operating profit after tax

Cellular Access? Inc., is a cellular telephone service provider that reported net operating profit after tax? (NOPAT) of $246 million for the most recent fiscal

  Estimates using the arithmetic average will probably tend

Estimates using the arithmetic average will probably tend to _____ values over the long-term while estimates using the geometric average will probably tend to _____ values over the short-term.

  Issuing final liquidating dividend

The company has stated that it plans on issuing a dividend of $0.60 a share at the end of this year and then issuing a final liquidating dividend of $2.90.

  How incorporating will affect the richards familys ability

Explain how incorporating will affect the Richards family's ability to transfer ownership to their children. Justify Jake's concerns with hiring professional management.

  What is the present value of an annuity

What is the present value of an annuity of $5,500 per year, with the first cash flow received three years from today and the last one received 25 years from tod

  Calculate the duration gap at the time of purchase

Calculate the duration gap at the time of purchase. Does this bond at purchase entail the risk of higher or lower interest rates?

  Impound irrigation water and to provide flood protection

Five years ago a dam was constructed to impound irrigation water and to provide flood protection for the area below the dam.

  Traders expect the spot rate

Suppose the one-year forward rate is £.6390. Given no arbitrage opportunities, this implies that traders expect the spot rate to be:

  Should personal auto insurance be mandatory

Should Personal Auto Insurance be Mandatory? Should an Individuals Credit Score be used in Personal Lines (Auto, Homeowners) Underwriting? Does it make a difference whether it is used for accept/reject decisions or just in pricing?

  Companies make bonds callable

Companies make bonds callable A. In the event interest rates increase. B. In the event interest rates drop. C. To protect the buyers of the bond in the event the company goes bankrupt. D. So the bond can be converted to common stock. E. A or B could ..

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