What is the pay back period for project

Assignment Help Finance Basics
Reference no: EM133070428

Assume Company A invests Rs.1 million in a project that is expected to save the company Rs.250,000 each year. What is the pay back period for this project?

Consider another project that costs Rs200,000 with no associated cash savings will make the company an incremental Rs100,000 each year for the next 20 years at Rs2 million.

How long will it take to pay the investment back? Based solely on the payback period method, which project is a better investment?

Reference no: EM133070428

Questions Cloud

Criminal victim studies : Explain why comments made on social media are so impactful on the emotions of the victim. Identify the types of cyber-crimes
Monthly simple interest calculations : Assume that your friend chooses the CommBank Awards credit card. After about six months of using her new card as planned, she suddenly loses her casual job. As
Compute the mad of forecast errors : Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. Compute the MAD of forecast errors
Local loan shark customers : You are quoted an APR of 15.5% that is compounded every day from a local loan shark. The payments on the loan are due every week and this quote is intended to c
What is the pay back period for project : Assume Company A invests Rs.1 million in a project that is expected to save the company Rs.250,000 each year. What is the pay back period for this project?
Proportion of the optimal risky portfolio : An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 12% and a standard deviation of return of 10%. Stock B
Generate synergy value : Firm A has 68,000 shares outstanding and a stock price of $87 per share. Firm B has 39,000 shares outstanding and a stock price of $56 per share. The merger bet
Provide a pricing review for the 10 apis : You are building a Fintech solution(stock screening) and you are exploring the data marketplace. Your Fintech is using fundamental data (Income Statement, Balan
Conduct a group coaching session on business performance : Coach Underperforming Staff Assessment - Conduct a group coaching session on business performance with the underperforming staff, so as to collaborate

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the bc ratio at an interest rate of eight percent

A project to extend irrigation canals into an area that was recently cleared of mesquite trees. If the project is assumed to have a 20-year life, what is the B/C ratio at an interest rate of 8% per year?

  Explain the effect this reclassification would have on world

WorldCom reclassified $3.85 billion of operating expenses as capital expenditures. Explain the effect this reclassification would have on WorldCom’s cash flows.

  Discuss with him primary benefit of various type of annuity

Assume that you are advising your 25-year-old nephew on investing in an annuity. Discuss with him the primary benefits of the various types of annuities, and recommend one annuity to him.

  Obtain the largest aggregate npv

Total funds available is $60. A and B are mutually exclusive. B and C are mutually exclusive. What project(s) should be selected to obtain the largest aggregate

  What equal annual deposits must you make each year

You plan to retire 38 years from now. You expect that you will live 25 years after retiring. You want to have enough money upon reaching retirement age.

  What is the discounted payback period of a project

What is the discounted payback period of a project requiring an initial investment of $12,000 and producing daily positive cash flows that are summarized

  What is th expected return of the portfolio

You are the investment manager you have three assests. Treasury Bills, Carclays corporate bond fund, and Large Capt Stock. Bond Fund: Expected return is 6% and standard deviation is 9%

  Examine parties and role involved with a letter of credit

Analyze tax treaties and purpose. Examine the parties and role involved with a letter of credit.

  Solve for the optimal allocation of wealth to asset

The investor is an expected utility maximizer with a log utility function. Solve for the optimal allocation of wealth to each asset.

  Challenges of a successful acquisition

Starbucks made important acquisitions in the past two decades what would be the 5 (five) most common challenges of a successful acquisition

  Which should be actually selected

Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should be actually selected?

  Financial performance measures are vitally important to

business culture is the context in which the measures exist. they are bound to each other in terms of context and

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