nePayback period The Ball Shoe Company is considering an investment project that requires an initial investment of $524,000 and returns after-tax cash inflows of$87,180 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.a. Determine the payback period for this project.b. Should the company accept the project?tsa. The payback period for this project isyears. (Round to two decimal places.)Textlia LibraCalculatResource Enter vour answer in the answer box and then click Check Answer,= Study1 partremainingClear AllCheck.nication Tools >Question 9 (0/1)Question 10 (0/1)Question 11 (0/1)Ouestion 12 (0/1).Type here to search

Payback period method is a capital budgeting approach that helps to evaluate proposed alternatives…

Payback period The Ball Shoe Company is considering an investment project that requires an initial investment of $524,000 and returns after-tax cash inflows of $87,180 per year for 10 years. The firm has a maximum acceptable payback period of 8 years. a. Determine the payback period for this project. b. Should the company accept the project? a. The payback period for this project is years. (Round to two decimal places.)

Payback period The Ball Shoe Company is considering an investment project that requires an initial investment of $524,000 and returns after-tax cash inflows of $87,180 per year for 10 years. The firm has a maximum acceptable payback period of 8 years. a. Determine the payback period for this project. b. Should the company accept the project? a. The payback period for this project is years. (Round to two decimal places.)

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

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(Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $105,000 and will generate net cash inflows of $21,000 per year for 8 years. a. What is the project's NPV using a discount rate of 8 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 16 percent? Should the project be accepted? Why or why not? c. What is this project's internal rate of return? Should the project be accepted? Why or why not? a. If the discount rate is 8 percent, then the project's NPV is $ (Round to the nearest dollar.)
Pls make sure its correct thanks for yr work.Aberdeen Outboard Motors is contemplating building a new plant. The company anticipates that the plant will require an initial investment of $2.09 million in net working capital today. The plant will last 12 years, at which point the full investment in net working capital will be recovered. Given an annual discount rate of 5.8% , what is the net present value of this working capital investment? The NVP will be ?
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NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $41,150, and the project is expected to yield after-tax cash inflows of $9,000 per year for 7 years. The firm has a cost of capital of 8%. a. Determine the net present value (NPV) for the project. b. Determine the internal rate of return (IRR) for the project. c. Would you recommend that the firm accept or reject the project? a. The NPV of the project is $. (Round to the nearest cent.) Text dia Librai I Calculat Resource Enter vour answer in the answer box and then click Check Answer. Check Answer ic Study es Clear parts remaining nunication Tools > O Type here to search insert ( to |立

(Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cash inflows of $20,000 per year for 11 years. a. What is the project's NPV using a discount rate of 9 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 14 percent? Should the project be accepted? Why or why not? c. What is this project's internal rate of return? Should the project be accepted? Why or why not? a. If the discount rate is 9 percent, then the project's NPV is $. (Round to the nearest dollar.)
Big Steve's, a maker of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $130,000 and will generate cash inflows of $37,000 per year for 7 years. If the discount rate is 17%, what is the project's IRR? (Round to two decimal places.) O A.17.00% OB. 20.94% O C. 32.52% OD. 37.33% MacBook Air
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Payback period. What are the payback periods of projects E and F in the following table: ? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 years, which project(s) do you ассept? ..... What is the payback period for project E? years (Round to one decimal place.)
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Question: Big Steve's, maker of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $105,000 and will generate net cash inflows of $19,000 per year for 8 years. a. What is the project's NPV using a discount rate of 8 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 17 percent? Should the project be accepted? Why or why not? c. What is this project's internal rate of return? Should the project be accepted? Why or why not?

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