Whats the simple payback period

Assignment Help Financial Management
Reference no: EM131561664

A project is expected to generate a savings or profit improvement of $25,000/yr each for 4 years

The investment needed to generate this savings is $80,000

a. Whats the simple payback period

b. Whats the projects NPV if the firms discount rate or cost of capital is 10%

c. Whats the projects IRR

For all three methods, completely ignore taxes.

Reference no: EM131561664

Questions Cloud

What information will horst need in order to be a culturally : What information will Horst need in order to be a culturally competent counselor in this situation? What skills will Horst need to be a culturally?
The challenges associated with creating a user interface : Write a 1-to 2-page paper discussing the challenges associated with creating a user interface for the OEA and possible mitigation strategies.
Design a short questionnaire or survey to collect data : For this task, you will design a short questionnaire or survey to collect data on an educational topic of your choice.
Research a company that has undergone a shift in culture : Research a company that has undergone (or attempted to undergo) a shift in organization or culture within the past five years.
Whats the simple payback period : A project is expected to generate a savings or profit improvement of $25,000/yr each for 4 years. Whats the simple payback period.
How would that income be measured : Can you explain how to determine whether gallery should treat the donation as income? Further if donation is treated as income, how would that income measured
Identify cyber security risk components : Describe the challenges and benefits of implementing a cyber security risk mitigation strategy for a real or fictional company.
Provide a brief description of your proposed system : Apply a systematic approach to translate requirements into an executable systems design - perform modeling to assist with analysis and decision making
Calculate the line loss ratio-expense ratio-dividend ratio : Calculate the line’s loss ratio, expense ratio, dividend ratio, combined ratio (after dividends), investment ratio, operating ratio, and overall profitability.

Reviews

Write a Review

Financial Management Questions & Answers

  Acceptable for a cost estimate at this point of time

If project procurement documents have been approved, what estimating technique should be applied? What percentage of accuracy would be acceptable for a cost estimate at this point of time?

  Corporate social responsibility and financial performance

The question is: Is there any trade off between corporate social responsibility and financial performance.

  Capital budgeting analysis

Explain why sunk costs should not be included in a capital budgeting analysis,

  What is expected price of purchase

What is the expected price of purchase? What do they spend out of pocket and what is the resulting payoff diagram?

  Goal was reached in an account earning retirement fund

The number of years it would take to accumulate a $2,000,000 retirement fund

  The shortfalls of the dividend discount model

What do you think are the shortfalls of the dividend discount model?

  Companys expected loss per year on this building

Suppose your company has a building worth $340 million. Because it is located in a high-risk area for natural disasters, the probability of a total loss in any particular year is 1.4 percent. What is your company’s expected loss per year on this buil..

  Bonds make semiannual payments

The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 5.6 percent, what is the current bond price?

  What is the effective rate-nominal rate and periodic rate

What is the effective rate, the nominal rate and the periodic rate of this investment? Does your equal payment period match your compounding period?

  What is the theoretical one-year forward price of oil

The price of oil is $100 per barrel. Oil prices are expected to grow at 4% a year. The one-year risk-free rate of interest is 2% in simple terms. It costs $1 to store a barrel of oil for one year. If oil has no costs or benefits of carry, what is the..

  What are the principal classes of capital assets associated

What are the principal classes of capital assets associated with governmental activities that the city reports in it financial statements? What was the total amount of capital assets used in governmental activities added during the year? What was the..

  Attribute of futures contract

The fact that superior returns can not be made by selling stocks that cut dividends is evidence of: A long-short investment strategy is used in the case where the target is being tracked vastly differs from a diversified market portfolio. In such a s..

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