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In: Finance
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12...
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)
| Project D | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | –$12,200 | $3,470 | $4,420 | $1,760 | $0 | $1,240 |
Solutions
Expert Solution
Ans 0
The project does not payback.
| Year | Project Cash Flows (i) | DF@ 12% | DF@ 12% (ii) | PV of Project A ( (i) * (ii) ) | Cumulative Cash Flow |
| 0 | -12200 | 1 | 1 | (12,200.00) | (12,200.00) |
| 1 | 3470 | 1/((1+12%)^1) | 0.893 | 3,098.21 | (9,101.79) |
| 2 | 4420 | 1/((1+12%)^2) | 0.797 | 3,523.60 | (5,578.19) |
| 3 | 1760 | 1/((1+12%)^3) | 0.712 | 1,252.73 | (4,325.46) |
| 4 | 0 | 1/((1+12%)^4) | 0.636 | - | (4,325.46) |
| 5 | 1240 | 1/((1+12%)^5) | 0.567 | 703.61 | (3,621.85) |
| NPV | (3,621.85) | ||||
jeff jeffy answered 9 months agoRelated Solutions
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12...
Compute the discounted payback statistic for Project D if the
appropriate cost of capital is 12 percent and the maximum allowable
discounted payback is four years. (Do not round
intermediate calculations and round your final answer to 2 decimal
places. If the project does not pay back, then enter a "0"
(zero).)
Project D
Time:
0
1
2
3
4
5
Cash flow:
–$12,400
$3,490
$4,460
$1,800
$0
$1,280
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12...
Compute the discounted payback statistic for Project D if the
appropriate cost of capital is 12 percent and the maximum allowable
discounted payback is four years. (Do not round
intermediate calculations and round your final answer to 2 decimal
places. If the project does not pay back, then enter a "0"
(zero).)
Project D
Time:
0
1
2
3
4
5
Cash flow:
–$11,000
$3,350
$4,180
$1,520
$300
$1,000
Discounted payback period _______ years
Should the project be accepted or...
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 13...
Compute the discounted payback statistic for Project D if the
appropriate cost of capital is 13 percent and the maximum allowable
discounted payback is four years. (Do not round intermediate
calculations and round your final answer to 2 decimal places. If
the project does not pay back, then enter a "0" (zero).
PROJECT D:
TIME
0
1
2
3
4
5
Cash Flow $
-11,800
$3,430
$4,340
$1,680
$0 $1,160
Discounted Payback Period =
Should this be rejected...
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6...
Compute the discounted payback statistic for Project C if the
appropriate cost of capital is 6 percent and the maximum allowable
discounted payback period is three years. (Do not round
intermediate calculations. Round your final answer to 2 decimal
places.) Project C Time: 0 1 2 3 4 5 Cash flow –$2,900 $1,240
$1,050 $1,090 $680 $480 Discounted payback period years Should the
project be accepted or rejected? Rejected Accepted
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...
Compute the discounted payback statistic for Project C if the
appropriate cost of capital is 8 percent and the maximum allowable
discounted payback period is three years.
Time:
0
1
2
3
4
5
Cash flow:
–$1,000
$480
$480
$520
$300
$100
Calculate discounted payback period in years
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...
Compute the discounted payback statistic for Project C if the
appropriate cost of capital is 8 percent and the maximum allowable
discounted payback period is three years.
(Do not round intermediate calculations
and round your final answer to 2 decimal places.)
Project C
Time:
0
1
2
3
4
5
Cash flow:
–$2,200
$960
$840
$880
$540
$340
Should the project be accepted or rejected?
accepted
rejected
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...
Compute the discounted payback statistic for Project C if the
appropriate cost of capital is 8 percent and the maximum allowable
discounted payback period is three years. (Do not round
intermediate calculations and round your final answer to 2 decimal
places.) Project C Time: 0 1 2 3 4 5 Cash flow: –$1,600 $720 $660
$700 $420 $220
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...
Compute the discounted payback statistic for Project C if the
appropriate cost of capital is 8 percent and the maximum allowable
discounted payback period is three years. (Do not round
intermediate calculations and round your final answer to 2 decimal
places.) Project C Time: 0 1 2 3 4 5 Cash flow: –$2,200 $960 $840
$880 $540 $340
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7...
Compute the discounted payback statistic for Project C if the
appropriate cost of capital is 7 percent and the maximum allowable
discounted payback period is three years. (Do not round
intermediate calculations and round your final answer to 2 decimal
places.) Project C Time: 0 1 2 3 4 5 Cash flow: –$1,700 $760 $690
$730 $440 $240
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7...
Compute the discounted payback statistic for Project C if the
appropriate cost of capital is 7 percent and the maximum allowable
discounted payback period is three years.
(Do not round intermediate calculations
and round your final answer to 2 decimal places.)
Project C
Time:
0
1
2
3
4
5
Cash flow:
–$1,400
$640
$600
$640
$380
$180
Should the project be accepted or rejected?
accepted
rejected
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