What is project as discounted payback

Assignment Help Financial Management
Reference no: EM132066308

Quantitative Problem: 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 8%. 0 1 2 3 4 Project A -1,150 700 375 260 310 Project B -1,150 300 310 410 760

What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations.

What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations.

What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations.

What is Project B's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations.

Reference no: EM132066308

Questions Cloud

Quality management from qi in healthcare : How would you distinguish quality management from QI in healthcare? Please provide some examples.
What is the yield on one-year t-bonds one year from now : Today, interest rates on 1-year T-bonds yield 1.2%, interest rates on 2-year T-bonds yield 2.55%, and interest rates on 3-year T-bonds yield 3.8%.
Elements of reasoning and intellectual standards option : Elements of Reasoning and Intellectual Standards Option A Using the 8 elements of reasoning that were outlined in week 2 (Purpose, problem
Decision making process : What Impact do you think technology can play in the decision making process? In which steps could technology be useful?
What is project as discounted payback : Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows.
What is project deltas irr : Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis.
Exchanging data between access and other applications : Select one question from each chapter and respond thoroughly and specifically. Include the question with your response. Use MLA formatting standards
What is the portfolios required return : The market's required return is 11% and the risk-free rate is 3%. What is the portfolio's required return? Round your answer to 3 decimal places.
How much did quantum technology earn during given year : The company paid common dividends of $32,600 in 20X2 and had retained earnings of $503,000 on December 31, 20X1.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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