A project has an initial cost of $35,000, expected net cash inflows of $14,000 per year for 8 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places.

A project has an initial cost of $35,000, expected net cash inflows of $14,000 per year for 8 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places.

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: Get correct answer accounting questions

A: Step 1: Definition of Variable CostsVariable Costs are costs that change in direct proportion to the…

Q: Need NAswer of this Account questions

A: Step 1: Calculate Straight-Line Depreciation for Financial ReportingEquipment cost: $820,000Useful…

Q: The reconciled bank balance is?

A: Bank reconciling items:Deposit in Transit - not yet recorded by the bank but already added in the…

Q: Financial accounting

A: Step 1: Define Corporate FinanceCorporate finance identifies, evaluates, and manages financial…

Q: General accounting

A: Step 1: Define RevenuesThe corporate has to file returns with the statutory authorities like the…

Q: Rich corporation purchasesd a limited solve this general accounting question

A: Step 1: Define Intangible AssetsIntangible assets with limited life are subject to amortization just…

Q: Question no. 5 financial accounting

A: Explanation of Realized Gain: Realized gain is the profit that results from the difference between…

Q: Prepare General Journal for Go systems week ended February 5

A: Approach to solving the question:Go Systems: General JournalFor the Week Ended February 5DateAccount…

Q: general account questions

A: Step 1: Variable costing Variable costing includes only the variable product costs which are direct…

Q: Mr. and Mrs. Messimer have an adjusted gross income of $338,400 in 2015. Of that amount, they have…

A: Step 1: Adjusted Gross Income (AGI)The AGI is given as: AGI=338,400 Step 2:…

Q: Need Account Answer

A: FEEL FREE TO ASK FOR CLARIFICATIONS

Q: I don't need ai answer accounting questions

A: To find Ritter Company's taxable income, the relationship between taxable income and taxes paid is…

Q: Please solve this financial accounting problem without use Ai

A: Step 1: Define Earnings Before TaxesThe firm's earnings before taxes (EBT) is the remaining income…

Q: Given answer accounting questions

A: Step 1: Define Labor Rate VarianceLabor Rate Variance calculates the deviations between the actual…

Q: General Accounting

A: Step 1: Define ABC CostingActivity-based costing allocates manufacturing overhead costs to the…

Q: Altira Corporation provides the following information related to its inventory during the month of…

A: The cost of goods available for sale is the sum of the beginning inventory and the cost of all…

Q: None

A: Detailed explanation:Cost to produce 45000 units of Part XYZ = $ 13 per unit x 45000 units $ 585,000…

Q: Expert Of Account answer me'

A: Step 1: Given DataProductUnitsUnit CostUnit Market…

Q: I need general accounting question answer

A: Step 1: Define Price-Earnings RatioThe price to earnings ratio is the ratio of the market price per…

Q: Solve this problems and fill blank space

A: Step 1: Calculate Book Depreciation The machine's cost is $3,000,000 with an estimated life of 5…

Q: Subject:- General Account Waterway Frame Camera Shop uses the lower-of-cost-or-net realizable value…

A: Calculation for Ending Inventory Using LCNRV (Lower of Cost or Net Realizable Value):The…

Q: Provide correct answer general accounting

A: Step 1: Define TaxesThe taxes collected by any government may be bifurcated into two high-level…

Q: Determine the discrepancy

A: Explanation of Starting FloatThe starting float is the initial amount of money that is placed in the…

Q: What would the firm's payout ratio be? Please answer the financial accounting question

A: Step 1: Define Payout RatioThe firm's payout ratio determines the amount of dividend to be paid each…

Q: What is ending inventory?

A: Explanation of Beginning InventoryBeginning inventory is the value of inventory a business has on…

Q: General accounting

A: Step 1: Define AnnuityAn annuity if a security that pays a sum of money over a scheduled period of…

Q: Hello teacher please help me Accounting question

A: Step 1: Define Degree of Operating LeverageDegree of operating leverage is directly proportionate to…

Q: Wanted this general account answer

A: To calculate the total period cost for Hatfield Corporation under variable costing, we need to…

Q: Financial Account. You are finishing your 3rd year in business with $502,000 of gross income and…

A: To calculate the taxable income for this year, we will use the net operating loss (NOL) carryforward…

Q: Hello tutor please provide this question solution general accounting

A: Step 1: Define Straight-line Depreciation MethodThe straight-line depreciation method allocates the…

Q: Please answer the following requirements on these general accounting question

A: Step 1: Define Operating LeverageThe degree of operating leverage (DOL) is an accounting term that…

Q: Need help with this question solution general accounting

A: Step 1: Define Current LiabilitiesThe liabilities have credit balances and are shown against the…

Q: Subject = General Account

A: Step 1: Key DataCost per unit (FIFO): $19Market Value (Net Realizable Value, NRV): $16Inventory…

Q: Compute total dollar return on this investment for these financial accounting question

A: Step 1: Define Total Dollar ReturnThe total dollar return on a stock investment should include both…

Q: Solve this account query

A: Step 1: Calculation of total variable manufacturing cost for all 200 unitsTotal variable…

Q: None

A: Applied Overhead:Applied overhead = Standard hours allowed * Standard overhead rate= 46,750 hours *…

Q: What is the company's net operating income on these general accounting question?

A: Step 1: Define Net Operating IncomeThe net operating income is the primary component of the…

Q: Subject:- General Account

A: Ending Inventory under Variable CostingTo compute the value of ending inventory under variable…

Q: Provide answer in this general account problem

A: To compute the ending inventory value using the Lower of Cost or Market (LCM) rule by item, we…

Q: Part 1 of 2 Last month, Baxter Corporation purchased and used the same quantity of material in…

A: Detailed explanation: Given:Actual Price paid for material per Pound = $4.00Standard Price per Pound…

Q: Provide this question solution general accounting

A: Step 1: Definition of Beginning InventoryBeginning Inventory refers to the value of inventory a…

Q: I want answer for this problem

A: Explanation of Job Costing: Job costing is a system used to track and allocate costs associated with…

Q: Value of unaccounted inventory?

A: Explanation of Beginning BalanceThe beginning balance refers to the quantity of inventory that is…

Q: Subject = Financial Account Urban Company reports the following information regarding its production…

A: Compute the production cost per unit under variable costing, we include all variable costs (direct…

Q: A staff member at Cedar Grove Medical Supply conducted the monthly inventory audit. The computerized…

A: Explanation of Inventory Audit: An inventory audit is a systematic process of verifying the actual…

Q: Please provide this question solution general accounting

A: Solution= quick assets / current liabilities= (cash + accounts receivable) / accounts payable= ($62…

Q: I won't this question answer general accounting

A: Step 1: Define Cost-Volume-Profit AnalysisIn cost-volume-profit analysis, concepts like contribution…

Q: Given answer accounting questions

A: Step 1: Formula Cash received from revenue = Unearned revenue, ending + Sales revenue - Unearned…

Q: PLEASE HELP!!!

A: Purchase Price: Cash paid = $260,500 Note payable = $117,000 Total purchase price = $377,500 Fair…

Q: I don't need ai answer accounting questions

A: Step 1: Factory Overhead applied is 45% of direct labor cost but direct labor cost is not given.…

Question

I need this question answer general accounting

A project has an initial cost of $35,000, expected
net cash inflows of $14,000 per year for 8 years,
and a cost of capital of 12%. What is the project's
payback period? Round your answer to two
decimal places.

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

Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?
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?
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. a. What is the project’s NPV? (Hint: Begin by constructing a time line) b. What is the project’s IRR? c.what is the project’s payback period?
A project has an initial cost of $60,000, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places.
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. Requirements: What is the project’s NPV? What is the project’s IRR? What is the project’s PI? What is the project’s payback period? What is the project’s discounted payback period?
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project’s NPV? (Hint: Begin by constructing a time line) please use excel
A project has an initial cost of $50,000, expected net cash inflows of $13,000 per year for 7 years, and a cost of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $85,000 and expected free cash flows of $20,000 at the end of each year for 7 years. The required rate of return for this project is 9 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?
(Paybackperiod, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $26,000 at the end of each year for 6 years. The required rate of return for this project is 7 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?
(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $76,000 and expected cash flows of $22,040 at the end of each year for six years. The discount rate for this project is 9.8 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's Pl? d. What is the project's IRR? a. The payback period of the project is years. (Round to two decimal places.)
A project has an initial cost of $65,000, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 8%. What is the project's NPV? (Hint:Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.
A project has an initial cost of $45,000, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places. years