What is the payback period for this project

Reference no: EM132956724

Question: McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $832,500, and $1,230,000 over the next three years. What is the payback period for this project? Round to four decimal places.

Reference no: EM132956724

Questions Cloud

Prepare a statement of cash flows for the year : Prepare a statement of cash flows for the year ended April 30, 2020, on a non-comparative basis from the information provided. The CFO wants to use the direct

What is the bond price-haswell enterprises : Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 9.5%, based on semiann

What is the real risk-free rate : 5-year Treasury bonds yield 4.3%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free ra

What is the stock current price : A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 5

What is the payback period for this project : The investment will result in additional cash flows of $525,000, $832,500, and $1,230,000 over the next three years. What is the payback period for this project

What is the current stock price : A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 16.0%, and the constant growth rate is g = 4.0%. What is the current stock price

Compute the percentage total return : Suppose a stock had an initial price of $62 per share, paid a dividend of $2.50 per share during the year, and had an ending share price of $72.

Dividend yield and the capital gains yield : Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $90.

What is the expected return on a portfolio : A stock has a beta of 1.05 and an expected return of 11 percent. A risk-free asset currently earns 2.4 percent.

User Account

All Pages