What is Project A discounted payback

Assignment Help Financial Accounting
Reference no: EM132796188

Question - Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 12%.

 

0

1

2

3

4

Project A

1,100

700

365

250

300

Project B

1,100

300

300

400

750

Required -

1. What is Project A's payback?

2. What is Project A's discounted payback?

3. What is Project B's payback?

4. What is Project B's discounted payback?

Reference no: EM132796188

Questions Cloud

What would be the amount of expenses charged : What would be the amount of expenses charged in the profit or loss for the year ended December 31, 2015
Which would you select to train the retail employees : List and briefly discuss at least three types or methods of training that can be used for employee training. Of the three, which would you select to train.
What the new share price and the value of the growth option : If we assume that the risk of these new investments is the same as the risk of its existing investments, What the new share price and the value of growth option
Analyze how pricing promotions are used to change demand : Explain and validate the importance of aggregate planning to the organization's supply chain and its partners. Analyze how pricing promotions are used to.
What is Project A discounted payback : Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. What is Project A discounted payback
Describe transportation objectives of selected company : Analyze and describe the overall transportation objectives of the selected company. Describe and evaluate the modes of transportation that the company uses.
Describe the company information management system : Analyze and describe the company's information management system. As part of your analysis, analyze if its IMS gives the company a competitive advantage.
Determine the A segment profit margin : Miracle Green Corporation operates two garden supply stores: A and B. Sales revenue $880,000. Determine the A segment profit margin
Develop an hr strategy for a current or prospective company : In a paper (1,500-1,750 words), develop an HR strategy for a current or prospective company. Detail the implementation plan for your specific HR strategy.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the issue price of the debenture

Provide the journal entries at: 1 July 2018, 30 June 2019, & 30 June 2020. On 1 July 2018 Bombo Ltd issues $2 million in six-year debentures that pay

  What is the largest operating liability

What is the percent of Operating Liabilities v Non-Operating Liabilities? What is the largest Operating Liability?

  Erins taxable income must be adjusted by what amount

Brian and Erin have $1,800 of non business capital gains, $4,000 of non business capital losses, $2,700 of interest income, $18,200 of itemized deductions (none of which are personal casualty and theft losses), $6,500 of business capital losses, and ..

  Compute the standard deduction

Compute the 2016 standard deduction for the following taxpayers. If an amount is zero, enter "0". Click here to access the standard deduction table to use. a. Margie is 15 and claimed as a dependent by her parents. She has $800 in dividends income an..

  What is the amount of the borrower check

The borrower sends a check that includes the principal and all of the interest due on the note. What is the amount of the borrower's check?

  Prepare journal entries to record the transactions

Furtastic manufactures imitation fur garments. On June 1, 2016, Furtastic made a sale to Willett’s Department Store under terms that require Willett to pay $150,000 to Furtastic on June 30, 2016. Prepare the journal entries to record the transactions..

  Journalize the may transaction for purchase of raw materials

Journalize the May transactions for purchase of raw materials. Journalize the May transactions for factory labor costs. Journalize the May transactions for manufacturing overhead costs incurred. Journalize the May transactions for the assignment of d..

  Universal rule for achieving internal control over cash

Properly designed internal control will permit the same employee to: Which of the following is not a universal rule for achieving internal control over cash? Which of the following is not a control that generally is established over cash receipts?

  Prepare entry phoenix makes to record the acquisition

Prepare the entry Phoenix makes to record the acquisition of Spark and prepare a working paper to consolidate the balance sheets of Phoenix and Spark at January 31, 2014.

  Calculate the average inventory cash conversion cycle ratios

Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft Excel: Average inventory and Inventory turnover rate.

  Develop a probability distribution for npv

Develop a probability distribution for NPV based on the initial forecast. In other words, calculate the project's NPV along each path of the decision tree

  Create journal entries pertaining to transaction for jan

Create journal entries pertaining to this transaction for January 1, 20X5, and December 31, 20X5, together with a summary journal entry to record

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