For a project with the following set of cash flows, what is the payback period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year Cash Flow 1 07234 -$5,800 1,450 1,650 2,050 1,550 Payback period years < Prev 6 of 24 Nex CUCUECAA MacBook Air

For a project with the following set of cash flows, what is the payback period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year Cash Flow 1 07234 -$5,800 1,450 1,650 2,050 1,550 Payback period years < Prev 6 of 24 Nex CUCUECAA MacBook Air

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Mansi Inc. is considering a project that has the following cash flow data. What is the project's…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: Consider the following project Year (n) 0 1 2 3 4 Undiscounted cash flow…

Q: Can you tell me how to get the 0% to 25% rate numbers? I have to plot the NPV profiles. Year…

A: To prepare: NPV Profile

Q: Guerilla Radio Broadcasting has a project available with the following cash flows: Year Cash Flow 0…

A: Payback period is the number of years it takes the company to recoup the initial investment. A lower…

Q: in text form with proper workings and explanation for each and every part and steps with concept and…

A: Step 1: Given Value for calculation Cash Flow for Year 0 = -$46,000Cash flow for year 1 =…

Q: Homework Suppose you are offered a project with the following cash flows: Cash Flows $9,800 -4,300…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Project L requires an initial outlay at t = 0 of $35,000, its expected cash inflows are $8,000 per…

A: Answer:

Q: Which projects should the company accept? Check all that apply: Project C Project A Project B Submit

A: Honor Code: Since you have posted a question with multiple subparts we will solve only the first…

Q: None

A: The above answer can be explained as under - Here, the IRR is being calculated using the excel…

Q: I need typing clear urjent no chatgpt use i will give 5 upvotes

A: NPV with a discount rate of 0%:NPV = Sum of all cash flows - Initial investmentCash flows: $227,850…

Q: Can you please check my work bc it keeps showing that I'm m

A: Step 1: Understanding the Payback PeriodThe payback period is the time it takes for a project to…

Q: period You are considering independent projects: project A, project B, and project C. Given the…

A: Project A & Project B would be accepted.

Q: ind the value of P for which the inflows will equal the out ffective rate first. Rate ear Outflows I…

A: Cash flow may be inflow that positive cash flow and there may be outflow that is negative cash flow…

Q: a. Compute payback period for each project. Based on payback period, which project is preferred? b.…

A: There are two projects which are given in the question and in order to get the payback period the…

Q: Guerilla Radio Broadcasting has a project available with the following cash flows: Year Cash Flow 0…

A: To find the payback period, we need to determine the time it takes for the project's cumulative cash…

Q: Given the cash flows above and a discount rate of 5%, compute the payback period nd NPV of Project…

A: Capital budgeting means the methods used for finding the profitability of investment proposals.…

Q: Stenson, Inc., imposes a payback cutoff of three years for its international investment projects.…

A: Payback period= Total cash inflows/Cash outflows

Q: a) Given the following cashflows for Project Omega, what is the payback period in years assuming the…

A: The payback period is used to determine how long it will take an investment to recoup its initial…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: To calculate the payback period, we need to find the year in which the cumulative cash flow becomes…

Q: ос What is the profitability index of a project that costs $8,000 and provides cash flows of $2,100…

A: The objective of the question is to calculate the profitability index of a project given the cost of…

Q: A project has estimated annual net cash flows of $66,600. It is estimated to cost $466,200.…

A: The payback period is the estimated period in which the investment is expected to be returned fully.…

Q: Consider a project with the following cash flows: Time 0 1 2 3 4 5 CF -$5,000 $5,000 $4,000 $2,000…

A: IRR stands for internal rate of return. It is an important capital budgeting metric. IRR is that…

Q: Bramble Inc. is contemplating a capital investment of $90000. The cash flows over the project's four…

A: Payback period is the time required to recover original investment.

Q: Help

A: Payback period, net present value and annual rate of return are the capital budgeting techniques…

Q: Project's Cash Flow ($) D -82, 500 -83, 500 -$2,800 -$2, 300 1,600 -1,800 -1,000 2.800 -900 1.900 3…

A: The payback period refers to the period that is required to recover the initial cost. With the help…

Q: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…

A: The net present value represents the amount of value generated by a project or an investment for the…

Q: Exercise (NPV) - 20 mins Project A, B and C have the following cash-flow projections: Year Project B…

A: PAYBACK PERIODPayback period is the period in which money invested in capital asset is recovered for…

Q: Green Submarine has a project with the following cash flows: Year Cash Flows -$17,850 7,080 12,650…

A: The MIRR concept says that positive cash flows are reinvested at the discount rate and negative…

Q: 5 Year Cash Flow (X) Cash Flow (Y) -$ -$ 0 21,000 21,000 1 9,100 10,600 12.5 2 9,600 8,050 points 3…

A: Calculate the IRR for each project and crossover rate for the given two projects using Excel as…

Q: Ryngaert Medical Enterprises is considering a project that has the following cash flow and WACC…

A: Weighted Average Cost of Capital = WACC = 10%Cash Flow for year 0 = cf0 = -$1000Cash Flow for year 1…

Q: consider the following cash flows of two mutually exclusive projects, assume the discount rate is…

A: Net present value (NPV) is used to determine the present value of all future cash flows. Net present…

Q: Project 1 Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500…

A: payback period is the period during which the firm recovers its initial investment. Formula: payback…

Q: (Click on the icon here spreadsheet.) in order to copy the contents of the data table below into a…

A: Under the capital budgeting rule, Internal Rate of return must be more than the cost of capital in…

Q: uestion 3 4 Successfully signed in as bhaliyakanti061998. Max. score: 1.C The cash outflow for the…

A: Step 1: AB1YearCash Flow20-1000003150000422000053100006 7IRR-14%The IRR was -14% but the closest…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Step 1:To calculate IRR, we need to choose two rates and interpolate between them by calculating…

Question

For a project with the following set of cash flows, what is the payback period? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Year Cash Flow
1
07234
-$5,800
1,450
1,650
2,050
1,550
Payback period
years
< Prev
6 of 24
Nex
CUCUECAA
MacBook Air

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 1: Meaning of Payback Period

VIEW

Step 2: Information given in the question

VIEW

Step 3: Calculation of cumulative cash flows

VIEW

Step 4: Calculation of Payback Period

VIEW

Solution

VIEW

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

NPV profiles WACC (Dollars in Millions) Plan A Plan B Project NPV Calculations: NPVA NPVB Project IRR Calculations: IRRA IRRB NPV Profiles: Discount Rates 0% 5% 10% 15% 20% 22% 25% 11.00% NPVA $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 -$40.00 Formulas #N/A #N/A -$11.00 $2.47 $2.47 $2.47 #N/A #N/A NPVB 1 $6.39 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2 3 $6.39 $6.39 4 $6.39 $2.47 5 6 7 $6.39 $6.39 $6.39 $2.47 $2.47 8 9 $6.39 $6.39 $2.47 $2.47 $2.47 10 $6.39 $2.47 11 $6.39 12 $6.39 13 $6.39 $2.47 $2.47 $2.47 14 $6.39 15 $6.39 $2.47 $2.47 16 $6.39 $6.39 $2.47 17 39 $2.47
Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: Cash flow: 2 4 -$1,100 $370 $500 $540 $620 $120 NPV Should the project be accepted or rejected? O accepted O rejected MacBook Alr
Can you please show me the NPV formulas that I need to input for each blue shaded area
Details WACC 0 SGWN-O 1 2 3 4 5 6 7.80% Project A Project B -1225 395 402 423 432 489 512 -2146 592.5 603 634.5 648 733.5 768 1. Construct NPV profile table by using cashflows from Project A and B above. 2. Draw NPV profile 3. Compute crossover rate To receive EC your work has to be done in Excel.
Only typed answer and its argent give answer fast i will give you upvote
Problem 8-8 Payback (LO4) The following are the cash flows of two projects: Year Project A $ (380) Project B $ (380) 0 210 280 210 280 210 280 210 1234 4 What is the payback period of each project? Note: Round your answers to 1 decimal place. Project A B Payback Period years years
Use attachment to answer question q5- This question relates to the diagram, which shows the NPV profile for Projects X and Y. If Project Y lasts for 3 years and returns cash flows of $49 for each of the 3 years, what is the initial outlay of the project? (Hint: This is tricky. It requires a bit of lateral thinking, but it does not require the use of any time-value-of-money formulas - just addition and/or subtraction.) a. $87 b. $97 c. $60 d. $50
Use python to answer the following question: Question 5 A capital investment in an equipment with an upfront cost of $23,540 will provide you with the following annual cash flow stream (paid end of year): 1. $2,000 2. $1,456 3. $3,230 4. $6,850 5. $2,384 6. $1,234 7. $5,987 8. $4,190 The project will incur the following cost for maintenance and repair (paid end of year): Year 3: ($2,984) Year 4: ($1,837) Year 6-8: ($2,000) Calculate the NPV of the investment and comment on whether you should invest in the project. Why or why not? What is the IRR of the investment? The required rate of return is 3.5%.
practice
Tech Techies Company has a project available with the following cash flows :Year Cash Flow0 -$16,8001 $6,9002 $8,2003 $3,5004 $3,100What is the payback period?a) 1 yearb) 2 yearsc) 3 years
Do not give image format
Task 2A business has two projects to invest in, as follows:Create a new spread sheet, calculate NPV for the following projects at discount rates of 3% and 7%, respectively, by creating a dynamic process. Project 1 Project 2Year Cash inflows Cash outflows Cash inflows Cash outflows0 0.00 70,000.00 0.00 70,000.001 24,000.00 13,000.00 25,000.00 15,000.002 22,000.00 1,000.00 25,000.00 03 25,000.00 0 20,000.00 04 25,000.00 0 43,000.00 21,000.005 17,500.00 7,500.00 20,000.00 5,000.00 P1: NPV P2: NPVThen, a) by using a built-in/Excel function, calculate the NPV for each project with discount rates of 3% and 7%, respectively;b) By comparing the NPVs at the rate of…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS