Determine the Payback Period for each of the following 3 projects in as WINNINGS Enterprise is planning to embark on one of the projects. Project A (200, 000) 80, 000 70, 000 Project C (200, 000) 60, 000 Years Project B (200, 000) 50, 000 1 2 70, 000 70, 000 50, 000 20, 000 30, 000 50, 000 3 50, 000 80, 000 4 5 6

Determine the Payback Period for each of the following 3 projects in as WINNINGS Enterprise is planning to embark on one of the projects. Project A (200, 000) 80, 000 70, 000 Project C (200, 000) 60, 000 Years Project B (200, 000) 50, 000 1 2 70, 000 70, 000 50, 000 20, 000 30, 000 50, 000 3 50, 000 80, 000 4 5 6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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pts) Lloyd Enterprises Year 0 1 2 WN 3 45 5 has a project which has the following cash flows: Cash Flows ($) -158,000 27,000 66,000 103,000 130,000 29,000 The cost of capital is 10 percent. The project's discounted payback period is ..years.
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Consider the following fourmutually exclusive projects: Project J, K, L, and M. Assume that the investment in each project gets perpetually renewed (all the projects are perpetual). The cost of capital is 16%. Rank the projects according to profitability J K L M Initial investment 49,000 75,000 65,000 35,000 Annual cash flow 21,000 8,000 16,000 13,000 Lifecycle (years) 6 26 14 5s You are going to want to find the NPV and EAC of the cash flows. Since all of the cash flows are the same, you can use the PV function. Pay attention to the sign of the cash flows! You can also use the RANK function to rank the EACs for the four projects.
Subject: acounting
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