Reference no: EM13917615
An investment project has annual cash inflows of $4,900, $3,400, $4,600, and $3,800, for the next four years, respectively. The discount rate is 13 percent.
What is the discounted payback period for these cash flows if the initial cost is $5,200? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period ______ years
What is the discounted payback period for these cash flows if the initial cost is $7,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period ______ years
What is the discounted payback period for these cash flows if the initial cost is $10,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period ______ years
|
Required return on the project-pretax cost savings
: Your firm is contemplating the purchase of a new $759,500 computer-based order entry system. The system will be depreciated straight-line to zero over its seven-year life. It will be worth $49,000 at the end of that time. Suppose your required return..
|
|
What level of pretax cost savings-cost-saving device
: A proposed cost-saving device has an installed cost of $652,000. The device will be used in a five-year project but is classified as three-year MACRS (MACRS Table) property for tax purposes. The required initial net working capital investment is $47,..
|
|
The dividend is expected to grow at some constant rate
: Gay Manufacturing is expected to pay a dividend of $1.50 per share at the end of the year (D1 = $1.50). The stock sells for $32 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. W..
|
|
Investment project provides cash inflows
: An investment project provides cash inflows of $630 per year for eight years. What is the project payback period if the initial cost is $1,575? Payback period years what is the project payback period if the initial cost is $3,175?
|
|
What is discounted payback period for these cash flows
: An investment project has annual cash inflows of $4,900, $3,400, $4,600, and $3,800, for the next four years, respectively. The discount rate is 13 percent. What is the discounted payback period for these cash flows if the initial cost is $5,200?
|
|
Consider the two mutually exclusive projects
: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 346,000 –$ 48,000 1 49,000 24,400 2 69,000 22,400 3 69,000 19,900 4 444,000 15,000 Which ever project you choose, if any, you require a 16 percent return on..
|
|
What is the value of this bond to an investor
: A $1,000 bond is issued with a coupon rate of 8 percent and 20 years to maturity five years ago. If this bond pays interest semi-annually, what is the value of this bond (TODAY) to an investor who requires an 8 percent rate of return?
|
|
Evaluating project with the cash flows
: RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 28,000 1 10,200 2 12,900 3 14,800 4 11,900 5 – 8,400 The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects.
|
|
Calculate the balance in the investments account
: Barry, Hank, and Babe form a company named Long Ball Investments, hoping to find that elusive home run stock. A new clothing company by the name of Major League Apparel has caught their eye. Major League Apparel has two classes of stock authorized: C..
|