How long would it take to recover the initial investment?

Q: Can I calculate the Rate of Return using the NPV/initial investment? Why or why not?

A: When an investment is made in a certain project, its future outcomes are measured based on the money…

Q: NPV Your division is considering two projects with the following cash flows (in millions): 1 十…

A: Payback period is the time taken by a firm to recover its initial investment. Once the payback…

Q: When do the firm expect to recover the initial investment?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Is it worth the effort to estimate daily project cash flows?  Would doing so be helpful in the…

A: Cashflows are usually estimating yearly and then discounted at an appropriate discount rate

Q: Quantum Corp. is considering purchasing a new milling machine with a useful life of 6 years. The…

A: Payback period is the number of years the project takes to recover its initial investment. formula:…

Q: Why would the average rate of return differ from the internal rate of return on the same project

A:

Q: Why is it necessary to determine how long you can expect to reap benefit from the investment?

A: Individuals as well as firms often make investment and specify the time limit for which this…

Q: NAPOCOR is considering to put up power lines in an area between two points. There are two options…

A: Additional investment is the investment done by the company to remain competitive. Company is…

Q: 11-2 What is the expected return of the following investment? Probability Payoff 0.3 30.0% 0.2 10.0…

A: The expected return is the minimum required rate of return which an investor required from the…

Q: How can we aggregate the risk over the project life in terms of net present value?

A: It is an incorporation of the risk level of the project over the life of the in terms of NPV by way…

Q: What do you know about the mathematical value of the internal rate of return of a project under each…

A: Internal rate of return(IRR) is rate at which net present value(NPV) of project is equal to zero or…

Q: What are the best short-term and long-term investment strategies going forward into the future?

A: Short term investment strategy – Those investment that are usually traded for upto a span of 3 years…

Q: Sunland Corporation is reviewing an investment proposal. The initial cost is $104,400. Estimates of…

A:

Q: Based on the following information, calculate the expected return. Input area: State Recession Boom…

A: A portfolio's expected return is calculated as the weighted average of the expected returns of each…

Q: Which project has no rate of return?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of…

A: Net present value of the present value of cash inflows minus present value of cash out out flows of…

Q: What is the value added by the design of the financing package? How does it alter both the return…

A: The question is based on the concept o the financial package, which is explained as a complete…

Q: The management of NUBD Co. is considering the purchase of a new machien costing P400,000 with a…

A: Average rate of return or accounting rate of return is technique in capital budgeting which is used…

Q: What is the criteria to accept a project based on the net present value and the internal rate of…

A: Net present value (NPV) Is the difference between present value of all cash inflows and initial…

Q: What is the estimated Internal Rate of Return (IRR) of the project? Should the project be accepted…

A: Calculate the initial investment and operating cash flow for the given investment: Excel formula:

Q: What will an investment or a series of investment be worth after a period of time?

A: The time value of money states that an amount of money is worth more now than it will be in the…

Q: How long does it take to recover the initial investment?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: When can a project may fail the net-investment test?

A: Yes, a firm can initiate the withdrawal of the amount invested from the investment pool in which…

Q: Explain Yields on Investment Annuities?

A: The question is based on the concept of calculation yield, which describes the  returns to the…