Help me with this question Question:An investment project has annual cash inflows of $3,300, $4,200, $5,400, and $4,600,for the next four years, respectively. The discount rate is 15 percent. a. What is thediscounted payback period for these cash flows if the initial cost is $6,000? b. What isthe discounted payback period for these cash flows if the initial cost is $8,100? c. Whatis the discounted payback period for these cash flows if the initial cost is $11,100? Aninvestment project has annual cash inflows of $6,000, $7,100, $7,900, and $9,200, and adiscount rate of 16 percent. What is the discounted payback period for these cashflows if the initial cost is $9,500?

Step 1: Cash Outflows:Initial investment (cash outflow) is $6,000. The present value factor (PVF) at…

Answered: Question: An investment project has…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?
If a copy center is considering the purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an annual net cash flow of $20,000 per year, what is the payback period?
Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of 115,000 for nine years. Determine the internal rate of return for this project, using the present value of an annuity table appearing in Exhibit 5 of this chapter.
Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?
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An investment project has annual cash inflows of $4,000, $4,900, $6,100, and $5,300, for the next four years, respectively. The discount rate is 13 percent. What is the discounted payback period for these cash flows if the initial cost is $6,700? What is the discounted payback period for these cash flows if the initial cost is $8,800? What is the discounted payback period for these cash flows if the initial cost is $11,800?
An investment project has annual cash inflows of $4,200, $5,300, 6,100 and $7,400 and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $7,000? What is the discounted payback period for these cash flows if the initial cost is $10,000? What is the discounted payback period for these cash flows if the initial cost is $13,000? Do not round intermediate calculations and round your final answer to 2 decimal places.
What is the NPV of the following project if the discount rate is 11%? Round to the nearest cent.Investment today: $-121,000; Cash flow in year 1: $66,000; Cash flow in year 2: $72,000; Cash flow in year 3: $66,000

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