What is the payback period

Assignment Help Finance Basics
Reference no: EM132468173

A company is considering investing in a new equipment that will cost the company $2,260 at time=0. The after-tax cash flows are expected to be $705 each year for 16 years. What is the payback period?

Reference no: EM132468173

Questions Cloud

Compute the net income for the current year : The only entries in Retained Earnings were for net income and a dividend declaration of $12,000. Compute the net income for the current year
What is junior accountant : What is junior accountant. Explain (with reasons) whether you agree with the junior accountant or not for each of the note (1 to 14) above respectively.
What is the best way to communicate ideas : Compare the difference in profitability between your original forecast for the fiscal year 2012-2013 and the improved forecast using your suggested program
Design spreadsheet and prepare set of financial statement : Design a spreadsheet and prepare a set of financial statement forecasts for Walmart for Year +1 to Year +5 using the assumptions
What is the payback period : The after-tax cash flows are expected to be $705 each year for 16 years. What is the payback period?
Determine the opportunity for improvement : Determine the opportunity for improvement and provide general suggestions of how the financial situation could be improved. Conclude with your recommendations.
What is the profitability index : What is the Profitability Index (PI) of this project if the required rate is 16%?
What is the required rate of return on abc stock : ABC, Inc., has a beta of 1.37. The risk-free rate is 3.14% and the market risk premium is 6.83%. What is the required rate of return on ABC's stock?
How much is the inventory loss due to the flood : Goods in transit as of October 1, 20x1 amounted to 1,000, cost of goods out on consignment is 1,200. How much is the inventory loss due to the flood

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the most the firm can pay for the project

What is the most the firm can pay for the project and still earn its required return?

  Resolutions in a model of business management

Tactical operational exercises incorporate making resolutions in a model of business management. What aspect does tactical operations NOT cover?

  Compute the cash conversion cycle

Compute the cash conversion cycle for Fly Away Corporation. Compute the investments in accounts receivable and inventory based on the turnover ratios (sales divided by turnover ratios). Compute the accounts receivable collection costs and selling and..

  What are the sharpe and treynor ratios for the fund

Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.95.

  Role of financial manager in maximizing shareholder value

Discuss the role of the financial manager in maximizing shareholder value within today's financial markets and what would be the manager's viewpoint vs. an employee or stockholder viewpoint regarding maximizing share value?

  How much money will bickel recieve for the euros

Bickel located in Washington, exports products to a German firm and will recieve payment of 275,000 euros in three months. on june 1, the spot rate of the euro.

  Indian rupee is expected to depreciate

What is the net present value of the project if the Indian Rupee is expected to depreciate by 5% per year. Ignoring taxes, should Techno choose the project?

  Define and explain the theory of comparative advantage

Define and explain the theory of comparative advantage.- Name four of five key limitations to the theory of comparative advantage.

  Difference between an insured and a noninsured pension fund

Describe the difference between an insured pension fund and a noninsured pension fund. What type of financial institutions would administer each of these?

  Describing what are the stock performance measures

The BIG Idea What options are available to individuals who wish to invest in stocks?

  Calculate firm ratio long-term debt to long-term debt plus

A firm has $100 million in current liabilities, $200 million in total long-term liabilities, $300 million in stockholders' equity, and total assets of $600 million. Calculate the firm's ratio of long-term debt to long-term debt plus equity.

  Calculate the wacc below the re break point

The company's cost of retained earnings is 14% and the cost of external common equity is 16%. The corporate tax rate is 30%. Calculate the WACC below the RE break point.

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