What is the investment payback period

Assignment Help Financial Management
Reference no: EM131616127

Nakamichi Bancorp has made an investment in banking software at a cost of $1, 658, 250. Management expects productivity gains and cost savings over the next several years. If, as a result of this investment, the firm is expected to generate additional cash flow of $576, 774, $698, 013, $459, 184, and $335, 620 over the next four years, what is the investment's payback period? (Round answer to 2 decimal places, e.g. 15.25.)

Payback period is years.

Reference no: EM131616127

Questions Cloud

Use the time-value-of-money principles : Use the time-value-of-money principles to evaluate a personal capital investment such as going to graduate school, funding a retirement account,
Expected market return given expected return on security : According to the CAPM, what is the expected market return given an expected return on a security of 17.0%,
Major change in its investment policy and as consequence : Is this statement True or False Suppose that a company has a major change in its investment policy and as a consequence,
The correlation coefficient between the returns : If the variance of return on the portfolio is .050, the correlation coefficient between the returns on A and B is _________.
What is the investment payback period : Nakamichi Bancorp has made an investment in banking software at a cost of $1, 658, 250. what is the investment's payback period?
What are the tradeoffs between gaap and ifrs : What are the tradeoffs (advantages and disadvantages, not specific differences) between GAAP and IFRS?
Savings at an annual compounding rate : Assuming she invested all of her savings at an annual compounding rate of 10%, what was her starting salary at age 21?
Management is considering purchasing new machine : Kingston, Inc. management is considering purchasing new machine at cost of $4, 435, 448. If appropriate discount rate is 15 percent, what is NPV of investment.
What is the market price per share of it : What is the market price per share of it? What will the price of the share be at the end of 1 year from today after the 0.80 dividend?

Reviews

Write a Review

Financial Management Questions & Answers

  Depreciation expense and administrative expenses

Rogue Industries reported the following items for the current year: Sales = $6,000,000; Cost of Goods Sold = $3,000,000; Depreciation Expense = $270,000; Administrative Expenses = $290,000; Interest Expense = $60,000; Marketing Expenses = $60,000; an..

  Create a portfolio with an expected return

If your goal is to create a portfolio with an expected return of 11.3 percent, how much money will you invest in Stock X?

  Contribution to individual retirement account

You have just made a $1,500 contribution to your individual retirement account. Assume you earn a rate of return of 8.7 percent and make no additional contributions. How much more will your account be worth when you retire in 25 years than it would b..

  What yield to maturity is the bond offering

A 5.85 percent coupon bond with 18 years left to maturity is offered for sale at $1,055.25. What yield to maturity is the bond offering?

  Grow reit income is most related to provision of services

Which of the following strategies to grow REIT income is most related to "Provision of Services"?

  Starbucks decision from a capital budgeting outline

Discuss the recent acquisition, the probable growth of the tea industry and Starbucks’ decision from a capital budgeting outline.

  Determine the required rate of return for equity

Use the dividend growth model to determine the required rate of return for equity. Your firm anticipates paying a divdend of $2.25 per share next year, has a recent price of $40.20 per share, and anticipates a growth rate in dividends of 3.00% per ye..

  Determine its perpetual equivalent annual worth

Determine its perpetual equivalent annual worth (in years 1 through infinity) at an interest rate of 15% per year.

  Larger will the outstanding balance be at time of repayment

how much larger will the outstanding balance be at time of repayment on the 30 year loan versus the 15 year loan?

  Interest rate or credit affects the finance company

In today's economic climate determine which of the three types of risk- liquidity, interest rate or credit affects the finance company the most. Recommend a way to lessen the risk.

  What would we observe in the market for treasury bonds

If investors began to believe that the probability that the Treasury might default on its bonds had increased, what would we observe in the market for Treasury bonds?

  What is company target debt–equity ratio

What is the company’s target debt–equity ratio?

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