What is the payback period for the set of cash flows

Assignment Help Financial Management
Reference no: EM131068296

Consider the following cash flows:

Year       Cash Flow

0                –$7,200

1                   2,050

2                   4,500

3                   1,850

4                   1,550

Required: What is the payback period for the above set of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Payback period years

Reference no: EM131068296

Questions Cloud

What is its bond equivalent yield : A T-bill with face value $10,000 and 89 days to maturity is selling at a bank discount ask yield of 3.6%. a. What is the price of the bill? What is its bond equivalent yield? What is the price of the bill?
Combined federal plus state tax bracket : An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9.75% yields, what must municipals offer for the investor to prefer them to corporate bonds?
What is the projected increase in retained earnings : The Cookie Shoppe expects sales of $2,900 next year. The profit margin is 4 percent and the firm has a 41 percent dividend payout ratio. What is the projected increase in retained earnings?
Considering a new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..
What is the payback period for the set of cash flows : What is the payback period for the above set of cash flows?
What is the present value of its growth opportunities : Tri-coat Paints has a current market value of $35 per share with earnings of $2.05. What is the present value of its growth opportunities (PVGO) if the required return is 6%?
What is the average accounts receivable figure : Skye Flyer, Inc., has weekly credit sales of $15,900, and the average collection period is 61 days. What is the average accounts receivable figure?
What is the most you would pay for a share of miller : The Miller Milk Company has just come up with a new lactose-free dessert product for people who can't eat or drink ordinary dairy products. Miller recendy paid an annual dividend of S2.50, which will grow with the company. The return on stocks simila..
What must the coupon rate be on merton bonds : Merton Enterprises has bonds on the market making annual payments, with 16 years to maturity, and selling for $957. At this price, the bonds yield 9 percent. Required: What must the coupon rate be on Merton’s bonds?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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