What is the payback period for the following set of cash flows?Year01234Cash Flow-$4,3001,0002,3001,9002,500Multiple Choice2.53 years2.55 years2.48 years2.65 years

Payback period (PBP) refers to the period or duration within which the company is able to recover…

Answered: What is the payback period for the…

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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Similar questions

What is the present value of the following set of cash flows at an interest rate of 8% p.a. compounded annually? End of Year 1 $1,150 End of Year 2 $2,300 End of Year 3 $5,100 Select one: a. $7,401.20 b. $7,085.23 c. $8,550.00 d. $7,805.23
What is the future value at the end of year three of the following set of cash flows at an interest rate of 10% p.a. compounded annually? End of Year 1 $5,100 End of Year 2 $2,300 End of Year 3 $1,150 Select one: a. $8,550 b. $9,966 c. $9,851 d. $9,581
es Consider the following cash flows: Year Cash Flow 0 -$ 29,900 1 13,800 2 3 15,100 11,500 a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. b. What is the profitability index if the discount rate is 13 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. What is the profitability index if the discount rate is 20 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. a. Profitability index b. Profitability index c. Profitability index T
8. Calculating IRR What is the IRR of the following set of cash flows? LO 3 Year Cash Flow -$19,400 1 10,400 9,320 6,900
1. Discounted Payback (DCPB) and IRR analysis. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 8.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 1 -5500 +1500 2 +1800 3 +1500 4 +1800 5 6 +1500 +1800 7 +1500
What is the most you should pay to receive the following cash flows if your required rate of return is 10 percent? Year 1-3 $5,000 Year 4-6 Year 7-9 Years 10 $46,878.34 O $50,009.84 $40,639.31 $55,687.75 $52,439.73 $47,202.31 $8,000 $12,000 $15,000
What is the payback period for the following set of cash flows? Year Cash Flow 0 -$ 3,000 1 2,400 2 1, 600 3 2,200 4 2,200 A) 1.44 years B)1.32 years C)1.68 years D)2, 200
What is the payback period for the following set of cash flows? Year 0 1234 Cash Flow -$5,300 2,700 1,300 2,000 2,600 O2.67 years O2.78 years O2.65 years O2.60 years O2.95 years 4
Consider the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 8,000 2,250 5,300 2,050 1,750 What is the payback period for the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Payback period years M Prev 1 of 5 Next > tubi
9f
Cash Flow Series B Cash Flow Series C -$2,330 $2,870 $2,470 $2,070 $1,670 $1,270 Y Y Y - 2Y 2Y 2Y
Uneven Cash Flow Stream Year Cash Stream A Cash Stream B 1 $100 $300 2 400 400 3 400 400 4 400 400 5 300 100 What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent.Stream A $ _______Stream B $ _______

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What is the payback period for the following set of cash flows? Year Cash Flow 0 1 2 3 4 4,300 1,000 2.300 O 1,900 2,500 Multiple Choice 2.53 years 2.55 years 2.48 years 2.65 years