Beyer Company is considering buying an asset for $350,000. It is expected to produce the following net cash flows. Year 1 Year 2 $82,000 $45,000 Net cash flows Year Initial investment Year 1 Rad mit Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places) Year 2 Year 3 Year 4 Year 5 Total S Net Cash Flows (350,000) 82.000 45.000 70,000 100,000 14.000 41.000 Year 3 $70,000 Cumulative Cash Flows Payback period. ne response was expected cal formula besed calcu S (391,000) 82.000 127.000 C 197,000 377.000 391,000 00 Year 4 $180,000 6.93 years Year 5 $14,000 rre: he pots deducted

Beyer Company is considering buying an asset for $350,000. It is expected to produce the following net cash flows. Year 1 Year 2 $82,000 $45,000 Net cash flows Year Initial investment Year 1 Rad mit Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places) Year 2 Year 3 Year 4 Year 5 Total S Net Cash Flows (350,000) 82.000 45.000 70,000 100,000 14.000 41.000 Year 3 $70,000 Cumulative Cash Flows Payback period. ne response was expected cal formula besed calcu S (391,000) 82.000 127.000 C 197,000 377.000 391,000 00 Year 4 $180,000 6.93 years Year 5 $14,000 rre: he pots deducted

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $114,000 and will generate $45,000 in net cash flows for five years. Note: Negative cumulative cash flows should be indicated with a minus sign. Round break-even time answers to two decimal places. Determine the break-even time for this equipment. Year Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow x $ (114,000) x 45,000 x 45,000 x 45,000 x 45,000 x 45,000 x Present Value of 1 at 10% 1.0000 0.9091 0.8264 = 0.7513 = 0.6830 = 0.6209 = Present Value of Net Cash Flows $ (114,000) $ Cumulative Present Value of Net Cash Flows (114,000)
Rahul
XYZ plans to open a new store with the following forecasted free cash flows. If the interest rate is 8% and cash flows are expected to grow by 2% a year starting year 4, calculate project’s NPV 0 1 2 3 CF, mil. -50 35 55 85 -$1.5 million $1,386.9 million $1,589.1 million $1,244.1 million
Subject :
J7
c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. It expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information below, help determine the Total Net Cash Flows, the Net Present Value and the estimated Payback Period. Note: Estimate the payback period to the nearest year. Discount Rate 12% Investment Project Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow $ $ $ $ $ $ Total Net Cash Flow (5,000) 800 ? 900 ? 1,500 ? 1,800 ? 3,200 NPV of investment Estimated Payback Period
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Q1/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment , at the end of four years, would be $70,000. The company uses a discount rate of 14\% and the initial investment is $290,000. Calculate the NPV of the investment.
Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Product A Option B, Product B $185,000 $155,000 190,000 185,000 65,000 55,000 20,000 65,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank years Option B, Product B fill in the blank years