What is the payback period of the system

Assignment Help Finance Basics
Reference no: EM131520042

It will cost $5,500 to acquire a small computer back-up system. Cost savings are expected to be $1,800 a year for three years. After the three years, the system is expected to be worthless as that is the expected remaining life of the technology. What is the payback period of the system?

Reference no: EM131520042

Questions Cloud

What are the core competencies of the company : Which resources will help sustain a competitive advantage in a foreign market? What are the core competencies of the company?
Which theory or theories are being used by jessica : Which theory or theories are being used by Jessica, Marco, Maria, and Dr. Wilson to determine the moral status of the fetus? Explain
Discuss the some of the unique structural issues : Discuss the some of the unique structural issues that nonprofits must address when defining the role of volunteers.
What it a terrorist attack and why : What it a terrorist attack and why?How do you prevent, mitigate, or deter these sorts of incidents?
What is the payback period of the system : After the three years, the system is expected to be worthless as that is the expected remaining life of the technology.
Analyze past and present quality initiatives : Analyze past and present quality initiatives that address the health issue. Include both public and private sources
What are the common characteristics of good strategies : What is the difference between good and bad strategies as discussed in the video? What are the common characteristics of good strategies?
Capital budgeting and cost of capital report : Your firm has decided to spin off Android01 and Processor01 as a separate firm. The owners of the new firm will be equity holders and debt holders.
Discuss how law enforcement officials respond to calls : What is the correlation between mentally ill individuals and the criminal justice system?Discuss how law enforcement officials respond to calls?

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the increase in xyz market value

XYZ Corp. is about to borrow $100,000. The terms of the loan specify an annual equal repayment of principal in each of the next 8 years.

  What are option market value and the price of the stock

The exercise price on one of Flanagan Company's options is $15, its exrcise value is $22, and its time value is $5. What are the option's market value and the price of the stock?

  Write a fundraising letter to recent alumni

You also may consider that your letter will be sent directly to graduates; this is different from the Georgia Tech example, which is posted on the school website. Consider how this difference might affect the order, content, and tone of your lette..

  Which of the following statements regarding mortgage-backed

Which of the following statements regarding mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs) is most correct.

  Option pricing

XYZ pays no dividends and sells for $50.  There is a one-year call to buy 100 shares at $50 selling for $4.00.  If interest rates are 6%, what should a one-year put sell for?

  Predicted price change on this bond

You own a bond that has a duration of 7 years. Interest rates are currently 6% but you believe the Fed is about to increase interest rates by 100 basis points. Your predicted price change on this bond is ________.

  Vital suspense account

Pass diary passages to redress the accompanying blunders expecting the presence of the vital Suspense Account:

  Identify potential real options that might arrive

Identify potential real options that might arrive

  The risk-free rate is 6 percent and the market risk premium

Assume the risk-free rate is 6 percent and the market risk premium is 6 percent. The stock of PCN has a beta of 1.5. The last dividend paid by PCN was $2 per share.a. What would PCN's stock value be if the dividend was expected to grow at a constant:..

  Find what is the maximum capital budget

what is the maximum capital budget that can be adopted without adversely affecting stockholder wealth?

  What is the bond''s ytm

A firm raises capital by selling $20,000 worth of debt with flotation costs equal to 2% of its par value. If the debt matures in 10 years and has a coupon interest rate of 8%, what is the bond's YTM?

  You will receive a 100000 inheritance in 15 years your

you will receive a 100000 inheritance in 15 years. your investments earn six percent per year compounded annually. to

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