What is the payback period

Assignment Help Finance Basics
Reference no: EM133071378

-Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years.

-What is the payback period? 4 years

-What is the discounted payback period?

-What is the NPV?

-What is the IRR?

-Should we accept the project?

-What method should be the primary decision rule?

-When is the IRR rule unreliable?

Reference no: EM133071378

Questions Cloud

Calculate the cpi of 2020 with 2016 : The data in the table below show the average spending on recycling for primary schools in South Australia from years 2013 to 2020. Use exponential smoothing wit
What is the nature of the insider trading case against him : What is the nature of the insider trading case against him? How compelling is the case? Why do you think he has not accepted his guilt
Under the family and medical leave act : How much leave is entitled to under the Family and Medical Leave Act? Does the Family and Medical Leave Act guarantee paid time off?
Review - nursing organizations should endorse candidates : Endorse candidates for elected office. In your initial post, Select a position for either yes or no. List three rationales for supporting your position
What is the payback period : -Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years.
Logical structure of relational database : Identify how data is stored in the logical structure of a relational database. Provide citations and references for any direct/indirect citations.
Calculate the unit cost : They pay $ 60 an hour for labor, in one hour 4 bags are made. The gif rate they use is $40 per hour mod. Calculate the unit cost
Field industries-bond nominal coupon interest rate : Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $925. What is the bond's nominal (annual) coupon interest
Produce visual data representation : When looking at the methods that are available to produce visual data representation.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the after-tax salvage value

The tax rate is 21%. The equipment is classified as a 5-year property. What is the after-tax salvage value?

  Earnings before interest and taxes

If Earnings Before Interest and Taxes (EBIT) is $93,000, calculate Operating Cash Flow if  Sales is $350,000 Cost of Goods Sold (COGS) is $140,000 Fixed costs is $43,000

  Establish the importance of a b2b marketing strategy

Establish the importance of a B2B marketing strategy that takes into account potential channel conflict and its implications for branding.

  Calculate the yield to maturity on the given bonds

A 9 percent coupon (paid semiannually) bond, with a $1,000 face value and 15 years remaining to maturity. The bond is selling at $985.

  How much total interest will be paid

Shawn borrowed $132,600 at 4.25 percent for 30 years to purchase a home. Payments are to be paid monthly. If all payments are paid as agreed.

  Minimum payoff of portfolio

You purchased one call and one put option on the same underlaying stock. The strike price of the call option is 195 and the strike price of the put option is 20

  Calculate your monthly principal and interest payment

Calculate your monthly principal and interest payment? What is the APR (actual/true/effective rate of interest) on the loan?

  What is the dividend yield

The last annual dividend was $2.60 a share. Dividends increase at a constant 3.10 percent per year. What is the dividend yield?

  What are the advantages of stretching payables

What are the advantages and disadvantages of stretching payables? If you owned your own business, would you do it? Why or why not?

  How much you need to invest to have enough money

Explain how you calculate how much you need to invest to have enough money for your Child's college with interest rate 7%, if it will cost 100,000 in 18 years?

  Same after-tax cash inflows

What is the MIRR of a project if the initial costs are $1,698,600 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of 562,800 per year at the end of the year.

  What is mercury''s financial breakeven point

Mercury Air's debt consists of $50,000 in accounts payable, $100,000 in 10 percent notes payable, and $240,000 in 8 percent bonds. Mercury has no preferred stock. If its marginal tax rate is 35 percent, what is Mercury's financial breakeven 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