What is the projects discounted payback

Assignment Help Financial Management
Reference no: EM13919870

Discounted payback

Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places.

Years

Reference no: EM13919870

Questions Cloud

What is the cost of equity if you ignore taxes : Winter's Toyland has a debt-equity ratio of 0.58. The pre-tax cost of debt is 8.1 percent and the required return on assets is 15.1 percent. What is the cost of equity if you ignore taxes?
Include any related jurisdictional requirements : Explain whether your specific case was heard in the state or federal court system, and include any related jurisdictional requirements
Identify the dependent and independent variables : Determine the research questions and hypotheses being researched in each article.Identify the dependent and independent variables being manipulated or measured in each article.
Determine the percentage of total assets : Pratt Corp. started the accounting period with $30,000 of assets, $12,000 of liabilities, and $5,000 of retained earnings.
What is the projects discounted payback : Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback?
Appropriate balance between creator and user of the material : Determine whether or not existing "fair use" exceptions strike an appropriate balance between creators and users of the material. Provide two (2) specific examples to support your response.
How can the fx futures market be used for price discovery : How can the FX futures market be used for price discovery? Explain the basic differences between the operation of a currency forward market and a futures market.
Identify the top three process improvement opportunities : Analyze baseline data for the product or service discussed in the selected case to identify improvement opportunities. Establish performance requirements (quality, time, cost, customer satisfaction) for process improvement.
Expected earnings before interest and taxes : Harlan County Mining, a Kentucky-based coal mine, has expected earnings before interest and taxes of $7 million. Its unlevered cost of capital is 10.6 percent and its tax rate is 36 percent. The firm has debt with both a book and a market value of $1..

Reviews

Write a Review

Financial Management Questions & Answers

  What was change to net working capital-average tax rate

Brooks Corp. shows the following information on its 2014 income statement: sales=$185,000; costs=$98,000; other expense=$6,700; depreciation=$16,500; interest expense=$9,000; taxes=$19,180; dividends=$9,500. In addition, 1) What is the average tax ra..

  How an investor can take advantage

Explain the arbitrage opportunity that exists and how an investor can take advantage of it.Give specific details about how to form the portfolio, what to buy and what to sell.

  What is the retailers effective cost of trade credit

A large retailer obtains merchandise under the credit terms of 1/20, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..

  What is the beta for the companys stock

You are told the WACC for the following firm is 7.95 percent. The company pays no dividends. What is the beta for the company’s stock? Debt: 100,000 bonds with a par value of $1,000 and a quoted price of 112.30. The bonds have coupon rate of 6.1 perc..

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

Edwards Construction currently has debt outstanding with a market value of $90,000 and a cost of 11 percent. The company has EBIT of $9,900 that is expected to continue in perpetuity. Assume there are no taxes. What is the value of the company's equi..

  Expected for the foreseeable future

Last year Star Inc paid a dividend of $1.50 on its common stock last year. You expect the dividend will increase at 15% each year over the next three years; but after that, a normal growth rate of 5% is expected for the foreseeable future. Calculate ..

  Calculate the current price of the bond

Davidson Corp has a $1000 par value bond outstanding paying annual interest of 6.5%. The bond matures in 25 years. If the present yield to maturity for this bond is 10%, calculate the current price of the bond. List i and n in your solution.

  The current cash flow from assets for arras

Schultz Industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier for Schultz, and the acquisition would allow Schultz to better control its material supply. The current cash flow from assets for Arras is $8.0 milli..

  What is the present value of its growth opportunities

Tri-coat Paints has a current market value of $43 per share with earnings of $2.14. What is the present value of its growth opportunities (PVGO) if the required return is 5%?

  Face value and yield to maturity

Calculate the price of Bond A 2 years from now if it has a 7% annual coupon matures in 12 years and has $1000 face value and yield to maturity is 9%.

  How many years is it until this bond matures

The Lo Sun Corporation offers a 6.0 percent bond with a current market price of $788.50. The yield to maturity is 8.40 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?

  Valuation-options-what is the intrinsic value of the option

Valuation – options. The following information refers to a six-month call option on the stock of XYZ, Inc. What is the intrinsic value of the option? What is the option’s time premium at this price?

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