Projects A, B, and C each have an expected life of five years. Cash flows are as follows: Project t0 t1 t2 t3 t4 t5 A -100 25 25 25 25 25 -15 30 30 30 30 30 C -150 35 35 35 35 35 Given the initial cost and annual cash flow information above, what is the payback period for each project? (6 marks)
Q: 4. Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say…
A: rate of return = profit initial investment * 100
Q: Derby Transportation Inc. designs and builds trains for rail networks across Canada. The company,…
A: As per the given information: Contract value - $10,360,000Design component of the contract -…
Q: 5) Weight in portfolio 30% 25% Apple 20% JPMorgan Chase 25% Starbucks Caterpillar HPR 12/31/14 -…
A: Portfolio return is that return which is earned by the investor on his investment during the period…
Q: You deposit $3,000 at the beginning of every year for 30 years into an investment that earns 8.5%.…
A: Periodic deposit, A = $3,000 Interest rate, r = 8.5% Period, n = 30 years The future value of…
Q: 6. The Fisher effect and the cost of unexpected inflation Suppose the nominal interest rate on…
A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…
Q: Question 1: Part A 1 of 2 The Ghirardelli Chocolate Co. rents several small retail units from…
A: A series of fixed periodic payments made at regular intervals reveals annuity. The periodic payment…
Q: is the income statement information from Apollo Medical Devices. Identify the co $thousands les…
A: The items of the income statement that are directly involved with the operation of the company are…
Q: Bruno Eyewear recently announced that it will pay $.84 in dividends per share this year and $.90…
A: Given : Dividend current year = $0.84 Dividend Next year = $0.90 No of share = 500 Interest rate of…
Q: What is the face value of a three-month promissory note dated June 18, 2018, with interest at 4.5…
A: The maturity value of the note will be equal to the face value (FV) plus the interest payments.
Q: The annual risk free rate is 0.03. We have the followin assets (on an annual basis). Expected return…
A: Portfolio sharp ratio is calculated as shown below. Sharp ratio=Portfolio expected return-Risk free…
Q: JDW Corporation reported the following for 20X1: net sales $2,929,500; cost of goods sold…
A: An income statement that divides total revenue and expenses into operational and non-operating heads…
Q: It is necessary to evaluate the profitability of proposed improvements to a process prior to…
A: The future value represents the expected worth of the present series of cash flows. It is estimated…
Q: Which of the following is not a characteristic of a financial asset held for trading? a. It is…
A: Trading in financial instrument include assets such as stocks bonds mutual fund. the financial asset…
Q: How long would it take to double your money in an account paying 5% compounded quarterly? Ignoring…
A: FV = A * (1+r) n where , FV = future value A = Amount invested r = interest rate n =time period.
Q: apital Investment Appraisal s the company's Financial Analyst, you have been tasked to attend a…
A: Capital Investment can be decided based on Net present Value. NPV is the difference between Present…
Q: (Present value of an annuity) What is the present value of the following annuities? a. $2,400 a year…
A: Present value of annuity is calculated by discounting all the future cash flows at a given discount…
Q: A fırm is considering the following alternatives, each with a five year life. What is the IRR of the…
A: The Internal rate of return is a capital budgeting metric which is used to measure the return on…
Q: Fey Fashion paid the following dividends from 2013 to 2019: 2013 2014 2015 2016 2017 2018 2019 $1.00…
A: Please note that under Answering Guidelines only 1 question can be solved. Kindly repost the 2nd…
Q: Describe and link the following terms: a) Normal yield curve b) Term structure of interest rates c)…
A: Yield curve estimates the future rate of interest of bonds. Future rate of interest of bonds is the…
Q: Which of the following reclassifications of financial assets is permitted under PFRS 9? a.…
A: Financial Assets- Financial Assets are investment assets or non-physical assets whose value is…
Q: You borrow 180000 for 12 years from a bank in order to renovate your flat. The effective interest…
A: Loan Amount = 180,000 Time Period = 12 years Interest Rate = 4.8%
Q: Vorst Buy Company has had a lot of complaints from customers of late, and its stock price is now…
A: Reverse stock splits the shares of the company are merged together to form large shares and hence…
Q: (Cost of debt) Gilan Stationery Corporation needs to raise $574,000 to improve its manufacturing…
A: Bond Valuation is a valuation technique that is used to find the market value of a particular bond.…
Q: Riesemberg Medical Devices is allocating next year's budget among its divisions. As a result, the…
A: The best or optimum mix of projects is one that results the maximum NPV while meeting the provided…
Q: Better Burgers reported the following numbers (in millions) for the years ending February 2021 and…
A: The retention ratio is the ratio of profit retained (for business) to net profit. the profit…
Q: Although the Chen Company's milling machine is old, it is still in relatively good working order and…
A: NPV (Net Present Value) is referred to as the difference between the PV of the cash inflows and also…
Q: Which of the following is a financial liability? a. Deferred revenue b. A warranty obligation c. A…
A: Solution Concept As per the relevant accounting standard Financial liability is…
Q: (a) If the promotional budget is limited to $27,400, how many commercial messages should be run on…
A: Please note that under Answering Guidelines, only 1 question can be solved. Since multiple questions…
Q: O A risk-averse investor does not like risk and so would prefer to invest in the portfolio…
A: A rational investor wants more returns for a given level of risk or lower risk for a given level of…
Q: To calculate the number of years until maturity, assume that it is currently January 15, 2019. All…
A: Number of years= Jan 15,2024 - Jan15, 2019= 5Number of periods= number of years * 2 semiannual…
Q: A retailer has a gross sales of P1,400,000 with cost of sales of P560,000 and allowable deductions…
A: Tax is paid by the taxpayer on the taxable income. A taxpayer is the individual who has earned an…
Q: Seatwork Suppose you invest Php 100,000 today to: ● ● After a year, ● Buy 40 PLDT stocks at Php…
A: Return on investment includes the dividend received during the holding period , interest received on…
Q: Texas Real Estate has 13.55% coupon bond that pays semiannually at the end of each period. The…
A: A bond is a kind of debt security issued by the government and private companies for raising funds…
Q: Suppose that the S&P 500, with a beta of 1.0, has an expected return of 14% and T-blls provide a…
A: Given Information: Expected return for beta value 1 is 14% Risk free rate is 5% Weights for two…
Q: Which of the following dividends may be recognized as revenue? a. Cash dividends b. share dividends…
A: Solution Concept Dividend is the amount of profit distributed to the shareholders of the company The…
Q: Excel Online Tutorial Excel Online Structured Activity: Bond valuation You are considering a…
A: A bond is a debt instrument that takes a loan (in the form of the bond price) and repays the…
![Assignment - Payback period
Projects A, B, and C each have an expected life of five years. Cash flows are as follows:
Project
t0
t1
t2
t3
t4
t5
A
-100
25
25
25
25
25
-15
30
30
30
30
30
C
-150
35
35
35
35
35
Given the initial cost and annual cash flow information above, what is the payback period for
each project? (6 marks)
Please show all your calculations! Without calculations your results cannot be marked!
you can upload a photograph below
Open the course formulae sheet
В
I
Pris
II
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1a3825d-400c-4aff-8f0f-72566b296699%2F5a9d3d75-2f8d-4a96-b9b0-d2b7da38cd86%2Fzzmobed_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Payback period. Given the cash flow of two projects-A and B-in the following table, and using the payback period decision model, which project(s) do you accept and which proje period for recapturing the initial cash outflow? For payback period calp What is the payback period for project A? 6 Data Table - X years (Round to one decimal place.) (Click on the following icon D in order to copy its contents into a spreadsheet.) Cash Flow B. Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow $12,000 $6,000 $6,000 $6,000 $100,000 $20,000 $10,000 $40,000 $6,000 $30,000 SO $6,000 $6,000 year 6. SO Print DoneA project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912Assignment equipment, the useful life of which is four years. The net cash flows for the two projects are provided in the table below: Net Cash Flow (GH¢) Project Year 1 Year 2 Year 3 Year 4 1 2,550 2,450 1,700 1,400 1,240 1,550 2,100 3,800 end of its life. i. Find the payback period for each project. Establish the net present value for each project using discount rate of 20%. Establish the net present value for each project using discount rate of 25%. Determine the internal rate of return for each project. iii. iv. Using the payback criterion and the internal rate of return criterion advice the proprietor on the project he should undertake, giving reasons for your choice of project. V. 70
- 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 AirA project has cash flows of -$35,000, $0, $10,000, and $42,000 for Years 0 to 3, respectively. The required rate of return is percent, you should the project. 15 percent. Based on the internal rate of return of O 24.76; accept O 13.96; accept O 14.92; reject O 15.21; accept A Click Submit to complete this assessment. Question 30 of 30 Save and SubmitCurrent Attempt in Progress Pharoah Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $172,000 $182,000 $202,000 Annual net income: Year 1 14,700 18,900 28,350 14,700 17,850 24,150 3 14,700 16,800 22,050 4 14,700 12,600 13,650 14,700 9,450 12,600 Total $73,500 $75,600 $100,800 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.)
- *** By using the following table format, calculate: (a) Calculate the, the Payback Period, and the net Present Value of for each project. Calculation of Payback Period for each project: CUMULATIVE CASH FLOWS Project A Project B Project C £ £ £ Year 1 Year 2 Year 3 Year 4 Year 5 Payback Period (years and months) Calculation of Net Present Value for each project: Discount Factors Project A Project B Project C CF DCF CF DCF CF DCF £ £ £ £ £ £ Year 1 Year 2 Year 3 Year 4 Year 5 Total DCF Initial investment Net present value b) For each of the above methods of project appraisal recommend which project should be taken up. c) Using all the information gathered from the above techniques which…Payback period. Given the cash flow of two projects—A and B—and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a three-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. Cash Flow A B Cost $14,000 $110,000 Cash flow year 1 $5,600 $44,000 Cash flow year 2 $5,600 $33,000 Cash flow year 3 $5,600 $22,000 Cash flow year 4 $5,600 $11,000 Cash flow year 5 $5,600 $0 Cash flow year 6 $5,600 $0A project has annual cash flows of €-45,000, €35,700, €15,700 and €5,700. Required: What is the payback period for this project? (Round your answer to 2 decimal places (e.g.. 32.16).) Payback period years
- If the cash flows for project A are C0 = −1,000; C1 = +600; C2 = +400; and C3 = +1,500, calculate the payback period. Group of answer choices 1 year Cannot be determined 3 Years 2 yearsPlease give exact answer and excel steps Jeans LLC has a project with the following cash flows . Its required rate of return is 5 % , Year 012345 Cash Flow Project A -52,000.00 25,000.00 17,000.00 14,000.00 12,000.00 -3,000.00 What is the internal rate of retum ( IRR ) for this project ? options: a. 11.73859230479%b. 11.73962884992%c. 11.738592037872%d. 11.738591574995%e. 11.738592402818%f. 11.738672984783% Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.For each requirement, change the values of the given information as shown and keep all other original data the same. Then enter your updated final answers for each scenario. Scenario A: Future value to be received $ 10,000 Future date received 3 years Discount Rate 6% 10% 16% Scenario B: Annual Cash Receipt $ 5,000 Number of Years 6 years Discount Rate 6% 10% 16% Scenario C: Discount Rate 8% Investment Project Cash Flow Initial Investment $ (6,500) Year 1 $ 700 Year 2 $ 800 Year 3 $ 1,400 Year 4 $ 3,600 Year 5 $ 6,800 Required: a. A company is expecting to receive a lump sum of money at a future date from now. Using the PV formula in Excel, what is the Present Value of that money at three different rates? (Round your answers to 2 decimal places.)
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)