Question
In: Finance
Year A B C 0 -10,000 -13,000 -15,000 1 5,000 5,000 7,000 2 6,000 2,000 2,000...
| Year | A | B | C |
| 0 | -10,000 | -13,000 | -15,000 |
| 1 | 5,000 | 5,000 | 7,000 |
| 2 | 6,000 | 2,000 | 2,000 |
| 3 | 7,000 | 6,000 | 1,000 |
| 4 | 2,000 | 1,000 | 5,000 |
| 5 | 1,000 | 7,000 | 6,000 |
Which projects will the firm accept if the payback period is three years? Which projects will the firm accept if the discounted payback period is three years?
Discount rate is 7%
Solutions
jeff jeffy answered 2 weeks agoRelated Solutions
Year Project(A) Project (B) 0 -$30,000 -$30,000 1 13,000 5,000 2 11,000 5,000 3 9,000 5,000...
Year
Project(A)
Project (B)
0
-$30,000
-$30,000
1
13,000
5,000
2
11,000
5,000
3
9,000
5,000
4
7,000
5,000
5
0
5,000
6
7
8
9
10
0
0
0
0
0
5,000
5,000
5,000
5,000
5,000
The required rate of return is 10%.
3). What is the payback period for each of the projects? Which
project should be accepted if the payback period method is applied?
Assume that the target payback period is 4 years. Explain why.
(4). What...
1) CF1=-$2,000, CF2=$3,000, CF3=$4,000, CF4=$6,000, CF5=$8,000 Set I =12 Solve for NPV = 2)CF1=$10,000, CF2=$5,000,CF3=$5,000, CF4=...
1) CF1=-$2,000, CF2=$3,000, CF3=$4,000, CF4=$6,000,
CF5=$8,000
Set I =12
Solve for NPV =
2)CF1=$10,000, CF2=$5,000,CF3=$5,000, CF4= $5,000, CF5= $5,000,
CF6=$7,000
Set I =12
Solve for NPV =$
3)CF1=$10,000, CF2=$10,000, CF3= $10,000, CF4= $10,000, CF5=
$10,000, CF6= $8,000, CF7= $8,000, CF8= $8,000, CF9= $8,000, CF10=
$8,000
Set I =12
Solve for NPV =$
Investment A: Year: 0 1 2 3 4 5 Cash flow: -$14,000 $6,000 $6,000 $6,000 $6,000...
Investment A:
Year: 0 1 2 3 4 5
Cash flow: -$14,000 $6,000 $6,000 $6,000 $6,000 $6,000
Investment B:
Year: 0 1 2 3 4 5
Cash flow: -$15,000 $7,000 $7,000 $7,000 $7,000 $7,000
Investment C:
Year: 0 1 2 3 4 5
Cash flow: -$18,000 $12,000 $4,000 $4,000 $4,000 $4,000
The cash flows for three projects are shown above. The cost of
capital is 7.5%. If an investor decided to take projects with a
payback period two years or...
Project Y has following cash flows: C 0 = -800, C 1 = +5,000, and C 2 = -5,000....
Project Y has following cash flows: C
0 = -800, C 1 = +5,000,
and C 2 = -5,000. Calculate the IRRs
for the project.
25 percent and 400 percent.
125 percent and 500 percent.
-44 percent and 11.6 percent.
No IRRs exist for this project.
Using the IRR Function Years Cash Flows 0 ($100,000) 1 $6,000 2 $7,000 3 $8,000 4...
Using the IRR
Function
Years
Cash Flows
0
($100,000)
1
$6,000
2
$7,000
3
$8,000
4
$9,000
5
$10,500
6
$11,500
7
$12,600
8
$15,000
9
$17,000
10
$70,000
Total
$66,600
IRR
<=== Use IRR funtion to calculate the Internal
Rate of Return of this Investment
Please format with two decimal places.
Consider the following investment opportunities. Period A B C D 0 -12,500 -11,000 12,500 -13,000 1...
Consider the following investment opportunities.
Period
A
B
C
D
0
-12,500
-11,000
12,500
-13,000
1
5,400
-3,000
-7,000
5,500
2
14,400
21,000
-2,000
5,500
3
7,200
13,000
4,000
8,500
a) Compute the present worth of each investment, assuming a MARR
of 15%
b) Compute the future worth of each investment, assuming a MARR
of 15%
c) Which project or projects are acceptable?
Suppose that you will receive $5,000 in year 1, $5,000 in year 2, $5,000 in year...
Suppose that you will receive $5,000 in year 1, $5,000 in year
2, $5,000 in year 3 and $7,000 in year 5. And somehow you know that
the present value for the whole cash stream is $23,071.30. At a 7%
discount rate, the cash flow received in year 4 will be
ــــــــــــــــــــــــــــ.
Select one:
a. $6,500
b. $7,200
c. $7,000
d. $6,800
Suppose that you will receive $5,000 in year 1, $5,000 in year 2, $5,000 in year...
Suppose that you will receive $5,000 in year 1, $5,000
in year 2, $5,000 in year 3 and $7,000 in year 5. And somehow you
know that the present value for the whole cash stream is
$23,071.30. At a 7% discount rate, the cash flow received in year 4
will be ــــــــــــــــــــــــــــ.
Select one:
a. $7,000
b. $7,200
c. $6,500
d. $6,800
A project has the following cash flow. Years Costs Benefits 0 $10,000 0 1 $1,000 $5,000...
A project has the following cash flow.
Years
Costs
Benefits
0
$10,000
0
1
$1,000
$5,000
2
$1,000
$5,000
3
$2,000
$6,000
4
$20,000
$3,000
a) Find net present value
b) Discounted Benefit-Cost Ratio
c)Net discounted Benefit-Cost Ratio
discount ratio is 10%
Find the discounted payback period. YEAR PROJECT A PROJECT B PROJECT C PROJECT D 0 (10,000)...
Find the discounted payback period.
YEAR
PROJECT A
PROJECT B
PROJECT C
PROJECT D
0
(10,000)
(15,000)
(20,000)
(30,000)
1
5,000
5,000
10,000
0
2
5000
5,000
10,000
0
3
20,000
5,000
4,000
100,000
4
1,000
10,000
2,000
120,000
5
-
5,000
-
60,000
answer : A(3 years) B(4years) C(4 years) D(3 years)
Pls show me the working on how to get the discounted payback
period. Pls do not show the working in excel, pls do it manually
and attached...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 11% annual...
- A local T-shirt company is running a promotion as follows: For customers that buy less than...
- Find the Asymptotic time complexity for each of the functions in the following: #Q2 # to...
- Examine whether violence in media promotes the normalization of aggression, the desensitization to violence, the committing...
- A tablet containing 500 mg of vitamin C was titrated with 20.15 ml of KIO3 to...
- Please give me an example of this java code. Vehicle - number: int - color: String...
- Many people assume that personality must be related to consumer behavior. Knowing a customer's personality profile...
ADVERTISEMENT