What is payback period for the cash flows

Assignment Help Financial Management
Reference no: EM131511707

Consider the following cash flows:

Year Cash Flow

0 –$ 6,200

1 1,800

2 3,500

3 1,600

4 1,300

What is the payback period for the cash flows?

Reference no: EM131511707

Questions Cloud

How much did the euro appreciate or depreciate : How much did the euro appreciate or depreciate? Be sure to indicate whether the euro appreciated or depreciated.
What should be the value of the put : if the effective annual risk-free rate of interest is 6% and there are four months until expiration, what should be the value of the put?
What is the real cost of hedging the payable : On the day Money Corp. received the MYR, the spot rate was $0.21/MYR. What is the real cost of hedging the payable?
What would be third year future value : What would be the third year future value?
What is payback period for the cash flows : What is the payback period for the cash flows?
Call options value using the two-state stock price model : calculate your estimate of the the call option's value using the two-state stock price model.
What will its cost of equity be : What is Malkin’s cost of equity? If the firm converts to 60 percent debt, what will its cost of equity be?
Evaluate perpetuity with an initial cash flow : Evaluate a perpetuity with an initial cash flow of 5 and a constant growth of 7.5% with a discount rate of 10%,
Average ratios to construct a pro forma balance sheet : Use the following industry average ratios to construct a pro forma balance sheet for Carlos Menza, Inc.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the covariance between portfolio a

Calculate the covariance between portfolio A, which has 10% in asset 1 and 90% in asset 2, and portfolio B, which has 60% in asset 1 and 40% in asset 2:

  Equity beta-what is the value of the firm

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.5, a debt-to-equity ratio of .5, and a tax rate of 40 percent. Assume a risk-free rate of 5 percent a..

  What will be the external financing needed

The board of ABC would like sales to grow to $810,500 in 2017. They plan to keep the dividend payout ratio the same. They know that assets and costs will grow proportionate to sales, but debt and equity will not. What will be the external financing n..

  Improving total knee replacement at brigham

In 2007 John Wright gathered a group of people from all of the profes-sions involved in total knee replacement at Brigham and Women’s Hos-pital—surgery, anesthesia, nursing, physical therapy—to formulate a single standard way of doing knee replacemen..

  No dividends will be paid on stock over the next nine years

No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth

  Calculate the book value per share and earnings per share

You are given the following information for Smashville, Inc. Cost of goods sold: $ 209,000 Investment income: $ 2,100 Net sales: $ 392,000 Operating expense: $ 90,000 Interest expense: $ 7,400. Calculate the book value per share, earnings per share, ..

  Calculate bond equivalent yield and effective annual return

Calculate the bond equivalent yield and effective annual return on a jumbo CD that is 135 days from maturity and has a quoted nominal yield of 6.70 percent.

  What is Project IRR-NPV and Payback Period

You will be evaluating three projects for Hasbro Toys. Hasbro's cost of capital or discount rate is 9%. The first project (A) will cost $30,000 initially. The project will then return cash flows of $7,000 for 5 years. What is Project A's NPV? What is..

  Budgeted statements contained in the case study

Devise a benchmarking review for Anthony's Orchard - Explain the potential value of a BSC to Anthony's Orchard. Describe specific ways that the introduction of a BSC can contribute to this organisation.

  Calculate the additional funds needed and stock price

Calculate the additional funds needed (AFN) using the percentage of sales method and prepare Year 2015 pro-forma balance sheet. Calculate ABC’s stock price using FCF based valuation model without using computer software like “Excel”.

  Valuate berkshire hathaway with two different methods

Valuate berkshire hathaway (BRK) with two different methods. Use discounted cash flows in conjunction with an appropriate ratio. How does the share price compare to the calculated valuations?

  The euro increased dramatically in value

The Euro increased dramatically in value against the U.S dollar between 2000 and 2009. The result has been that

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