What is the project payback period-bill

Assignment Help Finance Basics
Reference no: EM132507523

Bill plans to open a self serve grooming center in a storefront. The grooming equipment will cost $420,000, to be paid immediately. Bill expects after tax cash inflows of $91,000 annually for seven years, after which he plans to scrap the equipment (zero salvage value) and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 11 percent. What is the project's payback period?

Reference no: EM132507523

Questions Cloud

What is the current value of a six-month call option : Suppose Hewlett Packard's stock price is currently $20. In the next six months it will either fall to $10 or rise to $40.
Calculate cost of units transferred out and the cost of EWIP : Calculate the unit cost. (Note: Round answers to two decimal places.) Calculate the cost of units transferred out and the cost of EWIP
Compute the expected dividend per share for next six year : ABC Company has just paid a dividend of $1.20 per share. The dividend is expected to grow at 6 percent a year for the next three years
How much was manufacturing overhead under- or overapplied : Manufacturing overhead totaling $590,000 for 73,550 direct labor hours. By how much was manufacturing overhead under- or overapplied for the year?
What is the project payback period-bill : The first cash inflow occurs at the end of the first year. Assume the required return is 11 percent. What is the project's payback period?
Prepare t-accounts for the direct materials inventory : Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory, Manufacturing Overhead Control
Summarise your response to the topic : You need to organise your thoughts to make your essay more coherent and thoughtful. The organisation of ideas is vital since it will bolster the argument.
What rate does the firm just break even : Given a relevant discount rate on this asset of 13 percent per year, will the firm make a profit on this asset? At what rate does the firm just break even?
Calculate the company predetermined overhead rate : Assume that Rector Company uses direct labor hours as its manufacturing overhead application base. Calculate the company's predetermined overhead rate.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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