What is the approximate payback period for this investment

Assignment Help Financial Management
Reference no: EM131573158

Cheryl Peck purchased a computer network for her classroom. The computer network cost $100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows that enrollment will increase over time. She estimates 50 students the first year, 75 students the second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is 12 percent, what is the approximate payback period for this investment?

Reference no: EM131573158

Questions Cloud

Calculate the magnitude of the electrostatic force of attrac : Calculate the magnitude of the electrostatic force of attraction exerted by the proton on the electron inside the hydrogen atom.
Briefly describe the municipalitys demographics : Evaluate the previous three-year trend of the municipality's major revenue sources and expenditures.Briefly describe the municipality's demographics.
Finding closest pair of points using the euclidean distance : Apply the algorithm described in Example for finding the closest pair of points, using the Euclidean distance between points, to find the closest pair.
Explain why it is important to use peer-reviewed sources : Explain why it is important to use peer-reviewed sources in your scholarly writing. Be sure to provide the URL for each so they can be located readily
What is the approximate payback period for this investment : Cheryl Peck purchased a computer network for her classroom. what is the approximate payback period for this investment?
Assess the current challenges facing the hospital : Devise a plan to assess the current challenges facing the hospital.Recommend a sequence for improvement.
What specific behavior changes does maria have to make : How would you approach Maria to help to educate her about pregnancy risks. What specific behavior changes does Maria have to make to help her baby to be healthy
What will happen to price of the bond : If interest rates rise and the yield to maturity increase to 7.8 what will happen to the price of the bond?
Suggest two scenarios that depict the potential effect : According to the textbook, consumer-driven health plans often rely on large deductibles funded via a health savings account framework.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the amount of the payments

Jack and Hope are thinking of purchasing a house. The house costs $320,000 and they have saved $80,000 as a down payment. The rest will be secured by a mortgage. Calculate the monthly payments if they are made at the beginning of the month rather tha..

  Productions pays no dividend at the present time

Yesteryear Productions pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $2 a share next year, $4 a share the following year and then the company plans on increasing the dividend 10% annually...

  What must the coupon rate be on the companys bonds

Ghost Rider Corporation has bonds on the market with 11 years to maturity, a YTM of 6.8 percent, and a current price of $929. What must the coupon rate be on the company’s bonds?

  What is its annualized percentage all-in-cost

Motoguzzie exports large –engine motorcycles (greater than 700 cc) to Australia and invoices its customers in U.S. dollars. Sydney Wholesale Imports has purchased $3,000,000 of merchandise from Motoguzzie, with payment due in six months. If Motoguzzi..

  Research indicates that the organziational culture

Research indicates that the organziational culture. has very little impact on the individual employee's ethical behavior. has significant influence on the individual employees's ethical behavior.

  What would have been the rate of return to an investor

A closed-end fund starts the year with a net asset value of $14. By year-end, NAV equals $14.30. At the beginning of the year, the fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. What would..

  Listing of foreign companies on us exchanges

It has been shown that foreign companies listed on U.S. exchanges are valued higher than comparable firms from the same countries which are not listed on U.S. exchanges. Conduct research and discuss the reasons for this and also provide your source.

  Determine the future value of our deposit

Consider the formula we used to determine the future value of our deposit. Is this formula a realistic approximation of what we could expect from an investment or are there other issues or factors that must be considered? Besides savings accounts, wh..

  What was the variance of the returns over this period

You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –28.2 percent, 15.8 percent, 34.6 percent, 3.4 percent, and 22.4 percent. What was the arithmetic average return on the stock over this five-year period? ..

  Present value of series of cash flows

What happens to the present value of a series of cash flows (increase or decrease) as the number of payments (length of time) increases, holding all other factors constant? Does the change occur at a constant rate or at a varying rate? How do we hand..

  Supports depreciating long-term assets

What is the underlying principle that supports depreciating long-term assets over their useful lives instead of just expensing them when purchased? We want full disclosure of large cash expenditures.

  Discounts it based on a bank discount rate

Jenn borrows $600 from Sue on February 14, 2020 for 18 months at 10.5% simple interest. Then, 3 months before maturity, Sue sells the note to B. Harmless who discounts it based on a bank discount rate of 14%. How much did B. Harmless pay Sue for the ..

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