A project has an initial cost of $48,650, expected net cash inflows of $11,000 per year...

A project has an initial cost of $48,650, expected net cash inflows of $11,000 per year for 7 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

Solutions

Expert Solution

Project's Payback Period

Project's Payback Period = Initial Investment Cost / Annual cash inflow

Project's Payback Period = $48,650 / $11,000

Project's Payback Period = 4.42 Years

The Project's Payback Period will be 4.42 Years

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

A project has an initial cost of $70,900, expected net cash inflows of $11,000 per year...

A project has an initial cost of $70,900, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 8%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

IRR A project has an initial cost of $55,000, expected net cash inflows of $11,000 per...

IRR A project has an initial cost of $55,000, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 14%. What is the project's IRR? Round your answer to two decimal places.

Part A: A project has an initial cost of $60,025, expected net cash inflows of $11,000...

Part A: A project has an initial cost of $60,025, expected net cash inflows of $11,000 per year for 11 years, and a cost of capital of 14%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. Part B: A project has an initial cost of $35,000, expected net cash inflows of $14,000 per year for 10 years, and a cost of capital of 11%. What is the project's MIRR? Do...

A project has an initial cost of $70,000, expected net cash inflows of $15,000 per year...

A project has an initial cost of $70,000, expected net cash inflows of $15,000 per year for 10 years, and a cost of capital of 12%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $50,000, expected net cash inflows of $8,000 per year...

A project has an initial cost of $50,000, expected net cash inflows of $8,000 per year for 12 years, and a cost of capital of 13%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $58,975, expected net cash inflows of $12,000 per year...

A project has an initial cost of $58,975, expected net cash inflows of $12,000 per year for 11 years, and a cost of capital of 10%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.

A project has an initial cost of $42,350, expected net cash inflows of $8,000 per year...

A project has an initial cost of $42,350, expected net cash inflows of $8,000 per year for 8 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $45,450, expected net cash inflows of $8,000 per year...

A project has an initial cost of $45,450, expected net cash inflows of $8,000 per year for 8 years, and a cost of capital of 13%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $75,000, expected net cash inflows of $13,000 per year...

A project has an initial cost of $75,000, expected net cash inflows of $13,000 per year for 10 years, and a cost of capital of 9%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year...

A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places. _ years

Subjects