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 10 months 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...
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