What is the discounted payback period at interest rate

Assignment Help Financial Management
Reference no: EM131966634

1. "Consider the investment project below, which has a four-year investment life (n = 0 through 4).

Project ($)

-2,700

-1,400

2,000

2,200

2,000

What is the discounted payback period at an interest rate of 12.8%? Enter your answer as an integer. If the project never pays itself back, enter a 0."

2. "Consider the following cash flow and compute the equivalent annual worth at i = 13.3%.

The cash flow for years 0 through 6 in dollars is:

21,000

-3,300

-3,300

-7,500

-11,400

-13,200

-21,100

The answer could be negative."

Reference no: EM131966634

Questions Cloud

Interest rate for which project is acceptable investment : An oil and gas company is considering whether to begin drilling new oil field.What is the MAXIMUM interest rate for which this project is acceptable investment.
Does the nominal wage decrease : Does the nominal wage decrease when there is a negative supply shock? What happens to the real wage
Please assist with response to discussion comment : Housing becomes public good when it is non-excludable and non-rivalrous; that is, the use of others does not reduce the availability and that people cannot
Analyzes the role of religion and morality in the past : Analyzes the historical significance of two documents. Analyzes the role of religion and morality in the past, and the nature of the race in the past and today;
What is the discounted payback period at interest rate : "Consider the investment project below, which has a four-year investment life (n = 0 through 4). What is the discounted payback period at an interest rate of 12
Price level and employment : In an economy with a horizontal aggregate supply curve, a decrease in taxes will affect price level and employment in which of the following ways?
Commence new service station at location in queensland : ABM Petroleum Ltd, an oilfield service company, is planning to commence a new service station at a location in Queensland.
What three roles does money play in the economy : What three roles does money play in the economy? What is the di?erence between commodity money and fiat money? Please provide short answers.
Investigate and develop architectural internetworking design : Explain human factors in achieving business and technical goals through planning and design - develop architectural internetworking design for the business

Reviews

Write a Review

Financial Management Questions & Answers

  What are the risks of issuing foreign currency debt

What are the risks of issuing foreign currency debt? Are there benefits of offsetting these risks?

  Exporters who require guarantee of payment will ask

Exporters who require guarantee of payment will ask for. Suppose your firm receives $4.2 million order on the last day of the year.

  Calculate the beta portfolio

John invested the following amounts in three stocks: Security Investment Beta Stock A $915,411 0.62 Stock B $899,517 0.88 Stock C $231,454 2.28 Calculate the beta portfolio. Round the answers to two decimal places.

  What is the exercise value of the call option

A call option on the stock of Bedrock Boulders has a market price of $7. The stock sells for $30 a share, and the option has a strike price of $25 a share. What is the exercise value of the call option? What is the options time value?

  What is the yield to maturity of this bond

Fred is going to buy a 19 year bond that pays a coupon rate of 11.56% per year and has a $1,000 par value. The bond is currently priced at $1,326.92. What is the yield to maturity of this bond? Assume annual coupon payments. Show work. Round answer t..

  What will be their optimal upper cash limit

Hollywood Shoes would like to maintain their cash account at a minimum level of $64,000, What will be their optimal upper cash limit?

  Whether each would be treated as sunk or an opportunity cost

Given the costs related to the proposed project, explain whether each would be treated as a sunk cost or an opportunity cost in developing the incremental cash flows associated with the proposed replacement decision.

  Estimate the semiannual default probabilities

Estimate the semiannual default probabilities assuming the unconditional default probabilities are the same on each possible default date.

  What is profit per dollar from covered interest arbitrage

What is the profit per dollar from covered interest arbitrage?

  Calculate the payback period and Calculate the NPV

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $730 per set and have a variable cost of $330 per set. The company has spent $143,000 for a marketing study that determined the company will sell 55,000 sets per year ..

  What is the standard deviation of the stock returns

You find a certain stock that had returns of 15.4 percent, –22.7 percent, 28.7 percent, and 19.7 percent for four of the last five years. Assume the average return of the stock over this period was 13.4 percent. What was the stock’s return for the mi..

  Particular investment is different from the return

What actions can investors take when return they are expecting for any particular investment is different from the return they expect the investment to produce.

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