User Account

All Pages

What is the benefit-cost ratio of investment

Assignment Help Financial Accounting
Reference no: EM132751299

Capital Budgeting

The expected free cash flow from an investment is shown in the table below:

Year            Cash Flow

0                 $ (650,000.00)

1                    $ 50,000.00

2                    $ 175,000.00

3                      $ 250,000.00

4                       $ 250,000.00

5                      $ 200,000.00

The company's executives require a 12% return on all investments.

Problem a) What is the Payback Period of this investment?

Problem b) What is the Net Present Value of this investment?

Problem c) What is the Benefit-Cost Ratio (Profitability Index) of this investment?

Problem d) What is the Internal Rate of Return (IRR) of this investment?

Problem e) Based on the company's criterion, should it pursue this investment?

Reference no: EM132751299

Questions Cloud

How do determine what is the expected return on a portfolio : What is the expected return on a portfolio composed of 30 percent of security FGand 70 percent of security ? (Do not round the intermediate calculations.)
Architecture design of system : Discuss the types of cultural and political requirements and how they influence the architecture design of a system, especially if used globally.
What will be the stock new expected future capital return : What will be the stock's new expected future capital return per annum (proportional increase in price per year) if the change in payout policy goes ahead?
Primary functional components of software application : List and describe the four primary functional components of a software application, and the three primary hardware components.
What is the benefit-cost ratio of investment : What is the Benefit-Cost Ratio (Profitability Index) of this investment? The company's executives require a 12% return on all investments.
Effective client-reflective practice and supervision : Describe the article and how it relates to Effective Client/Reflective Practice and Supervision
Explain different screening practice and provide feedback : Respond to at least one colleagues who recommended a different screening/assessment practice and provide feedback. According to Hunsley & Mash, the challenge.
Removing child from the guardianship of the parent : What circumstances should be present (or what considerations should be made) before removing a child from the guardianship of the parent?
Health care facility or service that would accept medicaid : Select a health care facility or service that would accept Medicaid.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Bing leasing inc agrees to lease equipment to boyd inc on

bing leasing inc. agrees to lease equipment to boyd inc. on 1st january 2012. they agree on the subsequent terms.1 the

  How many extra days of credit can y receive

What is the effective annual rate of interest if Y pays on the due date rather than day 11? How many extra days of credit can Y receive if it passes up the cash

  Net present value of sinking well and installing equopment

An oil drilling project costs us, $60,000 for sinking a well, $150,000 to purchase equipment and $50,000 to install them. Also, the pumping equipment will entail annual on-going operating and monitoring cost of $100,000 per year. At t = 0, what is th..

  Find the market price per share of the company common stock

A company has just issued convertible bonds with $1,000 par value and a conversion ratio of 40. Which of the following is most likely to be the market price per share of the company's common stock at present

  A promissory note has outstanding payments of 650 at the

a promissory note has outstanding payments of 650 at the end of each of the next 5 years. what market price would be

  Liability limits-one event or two

Did the September 11 terrorist attacks on the World Trade Center constitute one loss or two? The resolution to this question is far from simple. Controversy surrounding this issue illustrates the ambiguities inherent in some business insurance con..

  How the stellar packagings break-even point would change

Explain how the Stellar Packaging's break-even point would change if (1) the selling price per unit decreased, (2) fixed costs increased throughout the entire range of activity, and (3) variable costs per unit increased.

  What is the bonds coupon rate

A fifteen-year bond sells for $832.38 and yields 6.80% APR. What is the bond's coupon rate? Assume semi-annual compounding. Enter coupon rate as decimal.

  How many units of product

Starg Corporation, a retailer, plans to sell 25,000 units of Product X during the month of August. If the company has 9,000 units on hand at the start of the month, and plans to have 7,000 units on hand at the end of the month, how many units of Prod..

  ACCM4600 Accounting Theory & Contemporary Issues Assignment

ACCM4600 Accounting Theory & Contemporary Issues - Research Assignment Help and Solution, Kaplan Business School, Australia.

  Five equal deposits are to be made in a fund

Beginning with January 1, 2011, five equal deposits are to be made in a fund.

  Woodlawn company is preparing the company

Woodlawn Company is preparing the company's statement of cash flows for the fiscal year just ended.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd