A project will cost $180,000. The after-tax future cash flows are expected to be$50,000 annually for 7 years. Based on this information, what is the project's DPB ifthe interest rate is 8%? An investment project costs $22,366 and has annual cashflows of $6,556 for six years. What is the discounted payback period if the discountrate is zero percent?

Problem 1: Discounted Payback Period (DPB) with an 8% Discount RateGiven:Initial cost of the project…

Answered: A project will cost $180,000. The…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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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?
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?
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An investment project costs $16,800 and has annual cash flows of $4, 100 for six years. a. What is the discounted payback period if the discount rate is zero percent? b. What is the discounted payback period if the discount rate is 6 percent? c. What is the discounted payback period if the discount rate is 21 percent?
A new project will have an intial cost of $14,000. Cash flows from the project are expected to be $0, $6,000, and $10,000 over the next 3 years, respectively. Assuming a discount rate of 18%, what is the project's NPV?
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?
If a project costs $120,000 and is expected to return $29,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at /= 16%? Assume that the cash flows occur continuously throughout the year. The payback period is years. (Round to one decimal place.)
An investment project costs $15,300 and has annual cash flows of $3,700 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period b. What is the discounted payback period if the discount rate is 4 percent? Discounted payback period c. What is the discounted payback period if the discount rate is 20 percent? Discounted payback period
If a project costs $50,000 and is expected to return $10,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at i=18%? Assume that the cash flows occur continuously throughout the year.
An investment project has annual cash inflows of $2800, $3700, $ 5100, and $4300, for the next 4 years, respectively. The discounts rate is 9%. What is the discounted payback period for these cash flows if the initial cost is $5200? What if the initial cost is $6400? What if it is $10,400?

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