What is the project payback period

Assignment Help Financial Management
Reference no: EM131328145

A project has an initial cost of $46,575, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places.

Reference no: EM131328145

Questions Cloud

Make beta coefficient important when constructing portfolio : Are portfolio managers willing to pay a premium for securities that reduce the systematic (market) risk of their portfolios? If so, why pay a premium? What makes a beta coefficient important when constructing a portfolio? If portfolio risk equals mar..
What is the return and alpha on portfolio : Nelson's portfolio is made up of A and B with characteristics as shown on the following table. The portfolio has 40% in A and the rest in B. The risk free rate is 2.5%. What is the return on Nelson's portfolio? What is the beta of Nelson's portfolio?..
The combined portfolio to accomplish your goal : SwellCo has a beta of 1.05 and Foggy Cloud has a beta of 0.35. If you want a portfolio with a 0.5 beta, what is the weighting of SwellCo in the combined portfolio to accomplish your goal?
What is the project discounted payback period : A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's discounted payback period?
What is the project payback period : A project has an initial cost of $46,575, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 13%. What is the project's payback period?
Produces and markets all types of electronics goods : Hi-Tech Electronics Limited was established in 2006 in Kualalampur, Malaysia. It produces and markets all types of electronics goods in most of the Asian and Pacific countries. The national employees demanded the management to pay equally with that o..
If interest rates are low bond prices are high : Guided Response: Review several of your classmates’ posts. Respond to at least two classmates by sharing your view of their conclusion. Are there any other factors that you can offer that may explain why the bond is selling at a premium or discount? ..
What is the equipments after-tax net salvage value : Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $14 million, of which 80% has been depreciated. The used equipment can be sold today for $4.9 million, and its tax rate is 40%. What is the equipment'..
What is the project operating cash flow : The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t = 1..

Reviews

Write a Review

Financial Management Questions & Answers

  Maturity pays coupon-market required rate of return

A $1,000 corporate bond with 10 years to maturity pays a coupon of 8% (semi-annual) and the market required rate of return is a) 7.2% and b) 10%. What is the current selling price for a) and b)?

  Explain desirable characteristics that would reduce exposure

What factors affect a firm's degree of transaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure.

  Advantages of the international trade agreement

Summarized the advantages of the international trade agreement selected and summarized the disadvantages of the international trade agreement selected.

  What are the equity value and debt-to-value ratio

Capital Structure and Growth Edwards Construction currently has debt outstanding with a market value of $75,000 and a cost of 9 percent. The company has EBIT of $6,750 that is expected to continue in perpetuity. Assume there are no taxes. What is the..

  Capital to start-additional net working capital investments

Production of the implants will require $1,530,000 in net working capital to start and additional net working capital investments each year equal to 20 percent of the projected sales increase for the following year. Total fixed costs are $1,430,000 p..

  What must the stock price be one year

This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year?

  Levered at debt to value ratio

Alabaster Incorporated wants to be levered at a debt to value ratio of .6 . The cost of debt is 9%. the tax rate is 35% and the cost of equity for an all equity firm is 12%. What will be Alabaster's cost of equity?

  What is the yield to maturity of five-year

What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semi annual coupons if this bond is currently trading for a price of $4876?

  Determine before tax-costs of debt financing of bond

Use the information below to determine before tax-costs of debt financing of bond S:

  Most corporate bonds

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon r..

  How much net income did the firm earn for the period

ABC Inc. has sales of $251,688, costs of $112,324, depreciation expense of $21,391, and interest paid of $49,571. The tax rate is 37 percent. How much net income did the firm earn for the period?

  What is your total profit or loss on these two ipos

You have placed an order to purchase 260 shares of every IPO that comes to market. The next two IPOs are each priced at $25 a share and will begin trading on the same day. You are allocated 55 shares of IPO A and 260 shares of IPO B. At the end of th..

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