Vaughn Inc. is contemplating a capital investment of $84000. The cash flows over the project's four years are:Expected AnnualExpected AnnualYearCash InflowsCash Outflows1$31000$1200024400019000363000240004900029000The cash payback period is

Answered: Vaughn Inc. is contemplating a capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bluefield Inc. is considering a project that will require an initial investment of $20,000 and is expected to generate future cash flows of $5,000 for years 1 through 3 and $2,500 for years 4 through 6. The project’s payback period is: A. 6 years B. 5 years C. 4 years D. 67 years
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A project requires a $42,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 16,800 $ 10,400 i = 12% n = 4 0.8929 Assuming a discount rate of 12%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below: i = 12% n = 2 0.7972 Multiple Choice $0 $30,240 $(12,104) $33,826 Year 3 $ 14,800 $(8,174) Total $ 42,000 i = 12% n = 3 0.7118
H
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Vaughn Inc. is contemplating a capital investment of $84000. The cash flows over the project's four years are: Expected Annual Expected Annual Year Cash Inflows Cash Outflows 1 $31000 $12000 2 44000 19000 3 63000 24000 49000 29000 The cash payback period is