What is the discounted payback period

Assignment Help Financial Management

Reference no: EM13872031

A project has an initial cost of $8,900 and produces cash inflows of $2,700, $5,100, and $1,700 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent?

Reference no: EM13872031

Questions Cloud

Endorsement deal with a prominent sponsor : Mr. Smith signs a five-year endorsement deal with a prominent sponsor. Under this deal Hyun-Woo will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the p..

In terms of present value of future money : Assuming that Mr. Smith does not need money desperately, which would be the best decision for Hyun-Woo (in terms of present value of future money)? (at 8% discounted interest rate)

Substitute for risk-free asset : Stock A expected return 8%, standard deviation 40%; stock B expected return is 13%, standard deviation is 60%.The correlation between these two stocks is -1. Can a particular portfolio constructed by stock A and stock B be a substitute for risk-free ..

What is the market value of this firm : Jake owns The Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the building in which it is located. This building was built at a cost of $1,200,000 and is currently appraised at $1,470,000. What is the..

What is the discounted payback period : A project has an initial cost of $8,900 and produces cash inflows of $2,700, $5,100, and $1,700 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent?

Discuss ethical issues facing the top leadership : Unfortunately, in recent times, we have seen a number of examples of unethical behavior in organizations, often tied to the organization's handling of finances. Discuss ethical issues facing the top leadership or financial managers in today's corpora..

What is the percentage change in the price of these bonds : Both Bond Bill and Bond Ted have 10 percent coupons, make semi annual payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity. If interest rates suddenly rise by 3 percent, what is the perce..

Prior law restricted the ability of acquirers to use credits : In September 2008, the IRS changed tax laws to allow banks to utilize the tax loss carry forwards of banks they acquire to shield their future income from taxes (prior law restricted the ability of acquirers to use these credits).

Compute the value of green valley company bonds : Green Valley company bonds have a 10.66 percent coupon rate. Interest is paid semi annually. The bonds have a par value of $1000 and will mature 16 years from now. Compute the value of Green Valley company bonds if investors' required rate of return ..

User Account

All Pages