What is the payback period of the next cash flow

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Reference no: EM132028756

1. What is the payback period of the next cash flow?

2. Some investors generate $ 765 cash flow annually for eight years. If the initial cost is $ 1,800, what is the payback period for this investment? What if the initial cost is $ 2,000? What if the initial cost is $ 6,300?

3. The annual cash flow for any investment is $ 4,200, $ 5,300, $ 6,100, and $ 7,400. The discount rate is 14%. What is the discounted payback period for this cash flow if the initial investment is $ 6,500? What if the initial investment is $ 9,600? What if $ 11,800?

4. Assume that an investment with an investment cost of $ 14,000 generates a cash flow of $ 3,700 per year for six years. If the discount rate is 0%, what is the discount discount period in this investment? What if the discount rate is 5%? What if 19%?

5. Let's say you decide to expand your business to expand your business. The plant construction cost is $ 15 million, which is depreciated by the straight-line method over the life of the investment. What is the average AAR in this investment if the expected net profits for the four years of plant establishment are $ 1,938,200, $ 2,201,600, $ 1,876,000, and $ 1,329,500, respectively?

Reference no: EM132028756

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