Solution-What is the projects payback period

What is the projects payback period

Reference no: EM132514620

Question - The director of capital budgeting for Big River Health Systems Inc. has estimated the following cash flows (in thousands of dollars) for a proposed new service:

Year	Expected Net Cash Flow ($)
0	(100)
1	70
2	50
3	20

The project's opportunity cost of capital is 10 percent.

Required -

a. What is the project's payback period?

b. What is the project's NPV?

c. What is the project's IRR?

Reference no: EM132514620

Questions Cloud

What is your communication strategy with your team : What is your communication strategy with your team? What can you do to reduce the challenges of distraction and the rumor mill for your team?

Prepare the journal entry to revalue the plant : Kingbird Inc., a publicly listed company, Prepare the journal entry to revalue the plant under the revaluation model using the proportionate method

Market trends and evaluating strategy plans : What are the current trends and assumptions within that industry? What components would you consider necessary for creating a strategic plan?

How much are the physical units for conversion costs : Equivalent units of production for conversion costs equal 37000. How much are the physical units for conversion costs if ending work in process is 50% complete?

What is the projects payback period : The director of capital budgeting for Big River Health Systems Inc. has estimated the following cash flows. What is the projects payback period

Evaluate michaels analysis and decision : Which step did Michael make a mistake in? Provide an explanation of the mistake. Michael Trencher bought his current cement mixer two years

What benefits are of the greatest value to employees : Many organizations are concerned about the rising cost of employee benefits and question their value to the organization and to the employees. In your opinion.

Measurable project objectives based on analyses : Create at least 3 measurable project objectives based on your analyses. Determine timelines and responsibilities for each objective (e.g. with a RACI chart)

What would be the effect on pro?t of modifying the pants : What would be the effect on pro?t of modifying the pants and selling them as opposed to selling 'as is'? The company should consider any price over

User Account

All Pages

What is the projects payback period

Reference no: EM132514620

Reference no: EM132514620

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

What is the amount of bond interest expense

How would you advice him regarding the deductions

Utilities for the plant 2400 each month plus 053 for each

Record the depreciation for the one-half year prior to sale

Compute the following variances indicate whether each

How much interest will the bank collect

Semiannual interest payment and amortization

Calculate the present value of the loan

Show the effects of the events on the financial statements

Rzio co purchases a machine for 12500 terms 210 n60 fob

Prepare an amortization table for the lessee in good form

What is the current price of the bond

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT