A project with an initial cost of $24,800 is expected to generate cash flows of $5,900,...

A project with an initial cost of $24,800 is expected to generate cash flows of $5,900, $8,000, $8,750, $7,650, and $6,700 over each of the next five years, respectively. What is the project's payback period? Multiple Choice 3.28 years 3.39 years 3.49 years 3.75 years 3.65 years

Expert Solution

3.28 years

Payback period is the time within which cost of project is recovered back.

Year	Cash flow	Cumulative Cash flow
0	$ -24,800	$ -24,800
1	5,900	-18,900
2	8,000	-10,900
3	8,750	-2,150
4	7,650	5,500
5	6,700	12,200

Payback period		=	3+(2150/7650)
		=	3.28 Years

jeff jeffy answered 2 months ago

a project with an initial cost of $73,600 is expected to generate annual cash flows of...

a project with an initial cost of $73,600 is expected to generate annual cash flows of $16,360 for the next 8 years. what is the projects internal rate of retu

a project with an initial cost of $29,350 is expected to generate cash flows of $7,200,...

a project with an initial cost of $29,350 is expected to generate cash flows of $7,200, $9,300, $9,400, $8,300 and $8,000 over each of the next 5 years respectively. what is the project payback period

6. A project with an initial cost of $58,050 is expected to generate annual cash flows...

6. A project with an initial cost of $58,050 is expected to generate annual cash flows of $15,480 for the next 7 years. What is the project's internal rate of return? 9. Rossdale Flowers has a new greenhouse project with an initial cost of $365,000 that is expected to generate cash flows of $48,600 for 10 years and a cash flow of $64,000 in Year 11. If the required return is 8.4 percent, what is the project's NPV?

Corporation has a project with the initial cost of $150. It will generate the cash flows...

Corporation has a project with the initial cost of $150. It will generate the cash flows of $50, $100, and $150 in years 1, 2 and 3, respectively, which is the internal rate of return (IRR) of project?

A project with an initial cost of $30,700 is expected to provide cash flows of $10,950,...

A project with an initial cost of $30,700 is expected to provide cash flows of $10,950, $11,800, $14,900, and $9,400 over the next four years, respectively. If the required return is 9.2 percent, what is the project's profitability index? 1.392 1.031 1.134 1.237 .808

A project has an initial outlay of $3,640. The project will generate cash flows of $4,565...

A project has an initial outlay of $3,640. The project will generate cash flows of $4,565 in Years 1-5. What is the Equivalent Annual Annuity (EAA) of this project? Assume an interest rate of 11%. Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. If your answer is negative, enter your answer as a negative number rounded off to two decimal points.

A company is considering a project that costs $150,000 and is expected to generate cash flows...

A company is considering a project that costs $150,000 and is expected to generate cash flows of $50,000, $52,000, $53,000 in the coming three years. Which of the following is correct? A. The project must have a postive net present value. B. The project must be accepted by the payback rule. C. The project must be accepted by the discounted payback rule. D The project must have an internal rate of return lower than 2% E. None of the above....

19) A firm is considering a project that is expected to generate annual cash flows of...

19) A firm is considering a project that is expected to generate annual cash flows of $24,000 for 15 years. The project requires an initial investment of $247,103.44. The cost of capital is 8.13%. What is the IRR of the project?

A project has an initial cost of $40,000, expected net cash flows of $9,000 per year...

A project has an initial cost of $40,000, expected net cash flows of $9,000 per year for 7 years, and a cost of capital of 11% Calculate in excel NPV, IRR, PB, DPB?

You are considering a project with an initial cash outlay of $72,000 and expected cash flows...

You are considering a project with an initial cash outlay of $72,000 and expected cash flows of $22,320 at the end of each year for six years. The discount rate for this project is 10.5 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR? a. The payback period of the project is nothing years.

Question