A project has an initial cost of $35,000, expected net cash inflows of $9,000 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.

A project has an initial cost of $35,000, expected net cash inflows of $9,000 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.

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 need this question financial accounting

A: To compute the percentage total return, we use the formula: Total Return (%)=Initial…

Q: provide correct and short answer. General Account

A: The correct answer is:d. Deferred tax liability Explanation:When using straight-line depreciation…

Q: Selling price The following adjustments have yet to be accounted for: 1. The company's depreciation…

A: Note:The warranty provision of £32,000 should be accrued and included in the administration…

Q: Account

A: Explanation of Straight-line over contract period:This method spreads the cost of an asset evenly…

Q: Atlas industries applies manufacturing solve this accounting questions

A: Step 1: Definition of Applied Manufacturing OverheadApplied manufacturing overhead refers to the…

Q: I need answer this general accounting question not us ai

A: Step 1: Define Intangible AssetsIntangible assets are those assets which are not physically visible…

Q: Give me right answer with proper way

A: Explanation of Dollar Amounts Determine Everything:This concept suggests that materiality in…

Q: Ivanhoe Distribution Co. has determined its December 31, 2017 inventory on a LIFO basis at $890,000.…

A: Step 1: Understand the Lower-of-Cost-or-Market RuleUnder the LCM rule, inventory is valued at the…

Q: I need this financial accounting question answer

A: Step 1: Define InvestmentInvestments are used by both the public and the organization to increase…

Q: Solve this account query

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

Q: Please provide answer general accounting question

A: Step 1: Define InvestmentThe investment is executed to gain financial gain. The investor purchases…

Q: Subject = General Account

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

Q: The following balance sheet information...

A: Explanation of Days Sales Outstanding (DSO): Days Sales Outstanding is a financial metric that…

Q: I won't this general accounting question please solve it..

A: Step 1: Computation 1 By using the future value formula, we can substitute the amounts and find the…

Q: An entry light has a total cost of $125 per unit, of which 80 is product cost

A: Explanation of Markup Percentage: Markup percentage is a measure that shows how much the selling…

Q: Problem

A: Explanation of Debt-to-Equity Ratio: The debt-to-equity ratio is a key financial metric that…

Q: Solve it ASAP Note: Account

A: Step 1: Organize the data providedSalesLeather jackets: $450,000Suede jackets: $542,000Variable…

Q: need general account solution

A: To calculate the total product costs for September, we need to include only costs associated with…

Q: Question

A: Explanation of Modified Relevance Testing: Modified relevance testing is an advanced approach to…

Q: I don't need ai answer accounting questions

A: Step 1: Define Direct Materials BudgetThe direct materials budget estimates the quantity of raw…

Q: Please provide correct solution these general accounting question

A: Step 1: Define Common Share OutstandingCommon shares outstanding refers to the total number of…

Q: 11 A company purchased a plot of land for $150,000 for the purposes of harvesting timber for resale.…

A: Step 1: Calculation of Total Depletable CostDepletable Cost = Land Purchase Price + Survey Cost -…

Q: 39 A company issues a convertible bond with a face value of $1,000 for $1,100. What information…

A: The company issues a bond with a face value of $1,000 for $1,100. This results in a premium of $100…

Q: Provide correct answer the financial accounting question not use ai

A: Step 1:Calculate the coupon payment received by an investor: Coupon payment = Face value * Rate of…

Q: Fill Blank space with full details

A: Step 1: DefinitionsThe lower-of-cost-or-market (LCM) method involves valuing inventory at the lower…

Q: DN Hill Enterprises Income Statement For Months Ended January February March Net sales Cost of goods…

A: To project the Year-to-Date (YTD) Net Income for 6/30/24, we first need to analyze the given data…

Q: At an activity level of 10,000 machine hours in a month, Nooner Corporation's total variable…

A: Step 1: Breakdown of CostsGiven:Variable cost for 10,000 machine hours = $837,000Fixed cost per…

Q: Financial Accounting

A: Step 1: Define Time ValueThe time value of an amount arises because of the alternative uses of an…

Q: Financial Accounting Question give correct answer

A: Step 1: Define Holding Period Return (HPR)The holding period return (HPR) is a percentage return on…

Q: Need help with this question solution general accounting

A: Step 1:Applied Manufacturing Overhead can be calculated by multiplying the Actual Manufacturing…

Q: Note. Account. need simple answer

A: Step 1: Define Total Cost EquationsThe total cost (TC) for each machine is the sum of fixed costs…

Q: I need this question general accounting

A: Step 1: Define High-Low MethodThe high-low method of accounting attempts to break out fixed and…

Q: Answer this Problem

A: Identify the estimated sales units:Given: 2,500 units Determine the variable cost per unit:Given:…

Q: I need this general accounting question

A: Step 1: Define Operating leverageOperating leverage is formula of cost accounting used to measure…

Q: Provide correct option in this account que.

A: Step 1: Understand Key TermsHistorical Cost: The original cost of the inventory ($50,000).Market:…

Q: Please provide correct answer general accounting question not use chart gpt

A: Step 1:As per the accounting equation, the total assets are always equal to the sum of total…

Q: 23 A company issues at par 10-year term bonds with a par value of $500,000, dated January 1 and…

A: Step 1: Given that, on January 1, a company issues a 10-year term bond with a par value of $500,000…

Q: Solution want. for this Account QUE.

A: To compare the operating results for Muzenski Industries under absorption costing and variable…

Q: ????

A: Questions:1.1.13Explanation of Relative Sales Value Method: This is a cost allocation method where…

Q: None

A: Answer: To ascertain Diane's Adjusted Gross Income (AGI) under the given circumstances, we'll…

Q: Please provide this question solution general accounting

A: Step 1: Formula Current Yield = Annual Interest/Current market price Step 2: Substitution Current…

Q: solution?

A: Explanation of Basket Purchase Transactions: A basket purchase transaction occurs when multiple…

Q: Please given answer the question

A: Step 1: Define Net Realizable ValueNet realizable value refers to the total amount that will be…

Q: General accounting question

A: To value the record collector's collection today we use the PV concept where we dis-count the future…

Q: Please give the correct answer the question

A: Step 1: Define Net IncomeThe basic formula for net income is gross profit minus operating expenses…

Q: I don't need ai answer accounting questions

A: Step 1: Definition of Average Collection Period (ACP)The average collection period measures how long…

Q: General Accounting Question provide solution

A: Step 1: Define Profit & LossA company's financial performance can be understood with the outcome…

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

A: Step 1: Define Labor costLabor cost comprises all the costs related to work done by the human labor…

Q: Please give me answer general accounting

A: Step 1: Define Cost-Volume-Profit AnalysisIn finance and accounting, the cost-volume-profit (CVP)…

Q: If you give me wrong answer I will give you unhelpful rate on these general accounting question

A: Step 1: Define Appling Manufacturing OverheadManufacturing overhead cannot be traced to the…

Question

What is the project's payback period on these financial accounting question?

A project has an initial cost of $35,000, expected net cash
inflows of $9,000 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.

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?
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 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 8%. What is the project's IRR? Round your answer to two decimal places.
A project has an initial cost of $35,000, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places. years
Project L requires an initial outlay at t = 0 of $56, 000, its expected cash inflows are $13,000 per year for 6 years, and its WACC is 11 %. What is the project's payback? 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%. 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 requires an initial outlay at t = 0 of $25,000, its expected cash inflows are $5,000 per year for 9 years, and its WACC is 11%. What is the project's discounted payback? Round your answer to two decimal places.
(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, 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?
Project L requires an initial outlay at t = 0 of $67,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places. years
(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $72,000 and expected cash flows of $20,880 at the end of each year for six years. The discount rate for this project is 10.8 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 PI? d. What is the project's IRR? a. The payback period of the project is years. (Round to two decimal places.)