A certain project has an initial investment of $4,208 and cash inflows of $3,500 for the first year and then $2,000 in year 2 and $800 in year 3. If the discount rate is 13%, what is the payback period?

A certain project has an initial investment of $4,208 and cash inflows of $3,500 for the first year and then $2,000 in year 2 and $800 in year 3. If the discount rate is 13%, what is the payback period?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

See similar textbooks

Related questions

Q: I won't to this question answer

A: Step 1: Given Value for Calculation Time = t = 5Future Value = fv = $125,000Interest Rate = r = 8%…

Q: General Accounting Question please answer do fast

A: Step 1: Define Gross ProfitGross profit refers to the remainder of net sales after direct costs…

Q: Answer? ? General Accounting

A: Step 1: Define Plantwide Overhead RateManufacturing overhead is the indirect production cost that…

Q: Accounting question

A: Step 1: Define High Low MethodHigh Low Method can be useful in segregating the fixed and variable…

Q: How does Economic?

A: Economic impact sequencing refers to the order in which economic events and their effects are…

Q: General Accounting question

A: To calculate the account balance after 3 years with 1% annual interest compounded quarterly, we use…

Q: Hi expert please give me answer general accounting

A: Step 1: Definition of Absorption CostingAbsorption Costing: A costing method where all manufacturing…

Q: How many units were sold?

A: Explanation of Operating Income:Operating income represents the profit a company earns from its core…

Q: A company has net sales solve this question general Accounting

A: Step 1: Define Gross ProfitThe profit of a firm is an important factor since it allows the owners to…

Q: Labor Rate?

A: Labor Rate Variance Solution:= (standard rate - actual rate) x actual hours= ($19.30 - $19.10) x 590…

Q: What is the gross profit ratio on these general accounting question?

A: Step 1:Gross profit ratio is calculated to show the relationship between the revenue from operations…

Q: How many basis points do you earn in interest on a typical day for this financial accounting…

A: To calculate the number of basis points earned in interest on a typical day with an annual interest…

Q: Financial accounting

A: Step 1: Define Due DateA note's due date refers to the day the note maker should repay the acceptor,…

Q: Hello Answer give with correct option

A: The comparables method uses the valuation parameters of a similar firm (Microsoft) to estimate the…

Q: If the estimated rate of gross profit is 40%, what is the estimated cost of the merchandise…

A: Step 1: Understand the FormulaThe gross profit method estimates the cost of goods sold (COGS) based…

Q: I won't to this question answer accounting

A: Step 1: Define Variance AnalysisVariance analysis helps businesses in keeping operational costs…

Q: Provide correct answer in this general account questions

A: Understanding the Differences between Public and Private Savings from an Economic StandpointSaving…

Q: Subject = General Account

A: Questions 1:- Microsoft Corp. will pay a dividend of $2.04 per share next year. Investors anticipate…

Q: Financial Accounting Question please answer do fast

A: Step 1: Define InvestmentAn investment is an asset created by an investor with their fund and…

Q: In the variable costing period's income statement, where should the period's fixed costs be…

A: In variable costing, fixed costs are treated as period costs and are expensed in the period…

Q: Pteri Manufacturing makes a single product - the Pteri. Information for 2005 appears below: Sales in…

A: Step 1: Understand Variable Costing :Under variable costing, only variable production costs are…

Q: Financial data for Hunger Games Company for last year appear below: Hunger Games Company Statements…

A: The margin is calculated by dividing the net operating income by the sales. In this case, the net…

Q: Financial Accounting

A: To calculate the labor efficiency variance, we use the following formula: Labor Efficiency Variance…

Q: General Account

A: Step 1:Under variable costing, the product cost includes direct material, direct labor, and variable…

Q: Omega manufacturing uses weighted average solution this general accounting question

A: Step 1: Definition of Equivalent Units for Conversion CostsEquivalent units for conversion costs…

Q: This is general account questions

A: Step 1: Understanding the Retail Inventory MethodThe Retail Inventory Method estimates the cost of…

Q: Subject = Financial Account

A: Step 1: FormulaThe cost per equivalent unit is: Cost per Equivalent Unit (Conversion…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Key TermFixed Asset Capacity Utilization: The percentage of fixed assets used…

Q: Answer? ? General Accounting question

A: Step 1: Define Variance AnalysisThe difference between the standard and actual cost is calculated…

Q: Carla Vista Co. sells coffee beans, which are sensitive to price fluctuations. The following…

A: To calculate the inventory value using the lower-of-cost-or-market (LCM) method, we determine the…

Q: I need this question answer general Accounting

A: Step 1: Define Standard CostingUnder standard costing, we compare actual and standard performance.…

Q: Please given correct answer general accounting

A: Step 1: Define Net IncomeThe net income is a measure of the profitability of an enterprise. It is…

Q: Solve it

A: To determine the unit product cost under variable costing, only the variable manufacturing costs are…

Q: Do fast answer of this accounting questions

A: Step 1: Define Market valueThe price an asset sells for on the open market is its market value.…

Q: Which of the following statements pertain to variable costing? a. This method must be used for…

A: Background: Variable CostingUnder variable costing, only variable manufacturing costs (direct…

Q: WHICH ANSWER IS CORRECT?

A: Explanation:Sustainability impact measurement requires special approaches because traditional…

Q: Ans

A: Explanation of Theater Sizes:Theater sizes at Silver Star Cinema are classified into three…

Q: Subject:- General Account

A: The correct answer is:c. Each individual item of inventory separately. Explanation:The lower of cost…

Q: You borrow $700 and promise to pay back $749 at the end of 1 year. Find interest rates earned.

A: The question requires the determination of the interest rate. An interest rate refers to the amount…

Q: The following information is provided by Raynette's Pharmacy for the last quarter of its fiscal year…

A: To solve this using the Retail Inventory Method, we proceed step by step. The method involves…

Q: The T. M. Jones Corporation earned an operating profit margin of 11.5% based on sales of $9.8…

A: Concept of Operating Profit MarginOperating profit margin measures the efficiency of a company in…

Q: If a period-end inventory amount is reported in error, it can cause a misstatement in all of the…

A: The correct answer is:C. Net sales. Explanation:A misstatement in the period-end inventory affects…

Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…

A: Step 1: Identify the Contribution Margin Per UnitThe contribution margin per unit is calculated as:…

Q: Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The…

A: Step 1: Key Data ProvidedProduct Lines: Poinsettias and Fruit TreesSales:Poinsettias: $970,000Fruit…

Q: Compute the following requirements on these general accounting question

A: A. Income from Continuing OperationsIncome from continuing operations is calculated by subtracting…

Q: What is their return on capital employed on these financial accounting question?

A: Step 1: Define Return on Capital EmployedThe overall return that the firm has been able to generate…

Q: ACCOUNTING EQUATION

A: Let us use the extended accounting equation given and work around it.Assets = Liabilities + (Revenue…

Q: General Account

A: To compute the lower-of-cost-or-market (LCM) valuation, you compare the cost and market value for…

Q: Please provide this question solution general accounting

A: Step 1: Define Cash CycleThe average time that is taken by a business to convert its payables into…

Q: There are 10,000 units in work in process inventory for the Mixing Department at the end of the…

A: Concept of Equivalent Units of Production (EUP)Equivalent units of production (EUP) is a concept…

Question

Hi expert please provide correct answer general general Accounting

A certain project has an initial investment
of $4,208 and cash inflows of $3,500 for the
first year and then $2,000 in year 2 and
$800 in year 3. If the discount rate is 13%,
what is the payback period?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this project?
Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?
Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?
If a copy center is considering the purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an annual net cash flow of $20,000 per year, what is the payback period?
Foster Manufacturing is analyzing a capital investment project that is forecast to produce the following cash flows and net income: The payback period of this project will be: a. 2.5 years. b. 2.6 years. c. 3.0 years. d. 3.3 years.
How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?
A new project will have an intial cost of $10,000. Cash flows from the project are expected to be $3,000, $3,500, and $4,000 over the next 3 years, respectively. Assuming a discount rate of 8%, what is the project's Payback Period?
What is the NPV of a project with an initial investment of $100, a cash flow in one year of $105, and a discount rate of 10 percent?
An investment project has annual cash inflows of $4,000, $4,900, $6,100, and $5,300, for the next four years, respectively. The discount rate is 13 percent. What is the discounted payback period for these cash flows if the initial cost is $6,700? What is the discounted payback period for these cash flows if the initial cost is $8,800? What is the discounted payback period for these cash flows if the initial cost is $11,800?
A new project will have an intial cost of $15,000. Cash flows from the project are expected to be $4,000, $6,000, and $8,000 over the next 3 years, respectively. Assuming a discount rate of 10%, what is the project's IRR?
A project has an initial cost of $8,500 and produces cash inflows of $2,700, $4,800, and $1,600 over the next three years, respectively. What is the discounted payback period if the required rate of return is 8%?
A project has an initial cost of $18,400 and expected cash inflows of $7,200, $8,900, and $7,500 over Years 1 to 3, respectively. What is the discounted payback period if the required rate of return is 11.2%? Select one: A. 2.57 years B. Never C. 2.45 years D. 2.87 years E. 2.31 years