Question
In: Finance
Three investments each cost $3,000 and have the following cash flows. If you had to choose...
Three investments each cost $3,000 and have the following cash flows. If you had to choose only one project based on payback period, which would you choose?
|
Year |
Expected Cash Flows |
|||
|
A |
B |
C |
||
|
0 |
-$3,000 |
-$3,000 |
-$3,000 |
|
|
1 |
1,200 |
1,700 |
- |
|
|
2 |
1,300 |
1,100 |
2,000 |
|
|
3 |
1,400 |
1,700 |
1,500 |
|
|
4 |
1,500 |
- |
1,000 |
|
|
B with a payback of 2.12 years |
||
|
A with a payback of 2.36 years |
||
|
C with a payback of 2.67 years |
||
|
B with a payback of 2.47 years |
||
|
A with a payback of 2.11 years |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Three investments cost $5,000 each and have the following cash flows. Rank them on the basis...
Three investments cost $5,000 each and have the following cash
flows. Rank them on the basis of their payback periods. Round your
answers to one decimal place.
Year
A
B
C
1
$
1,800
$
2,800
$
0
2
1,800
2,100
1,000
3
1,800
1,400
1,700
4
1,800
1,100
3,000
5
1,800
500
5,500
Payback for A: years ?
Payback for B: years ?
Payback for C: years ?
Based on the payback periods, -Select-investment (A,B,C)should
be chosen.
Problem 19-05 Three investments cost $5,000 each and have the following cash flows. Rank them on...
Problem 19-05
Three investments cost $5,000 each and have the following cash
flows. Rank them on the basis of their payback periods. Round your
answers to one decimal place.
Year
A
B
C
1
$
1,900
$
2,900
$
0
2
1,900
2,200
900
3
1,900
1,200
1,300
4
1,900
900
4,200
5
1,900
600
7,200
Payback for A: ____ years
Payback for B: ____ years
Payback for C: ____ years
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
2 comma 0002,000
$
3 comma 0003,000
$
4 comma 0004,000
2
3 comma 0003,000
3 comma 0003,000
4 comma 0004,000
3
4 comma 0004,000
3 comma 0003,000
( 4 comma 000 )(4,000)
4
( 5 comma 000 )(5,000)
3 comma 0003,000
( 4 comma 000 )(4,000)
5
5 comma 0005,000
5 comma...
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
2 comma 0002,000
$
3 comma 0003,000
$
4 comma 0004,000
2
3 comma 0003,000
3 comma 0003,000
4 comma 0004,000
3
4 comma 0004,000
3 comma 0003,000
( 4 comma 000 )(4,000)
4
( 5 comma 000 )(5,000)
3 comma 0003,000
( 4 comma 000 )(4,000)
5
5 comma 0005,000
5 comma...
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
End of Year A B C
1 $3,000 $3,000 $4,000
2 4,000 3,000 4,000
3 5,000 3,000 (4,000)
4 -6,000 3,000 (4,000)
5 6,000 7,000 14,000
What is the present value of each of these three investments if
the appropriate discount rate is 14 percent?
a. What is the present value of investment A at an annual
discount rate of 14 percent?
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
End of Year A B C
1 $1,000 $3,000 $5,000
2 2,000 3,000 5,000
3 3,000 3,000 (5,000)
4 -4,000 3,000 (5,000)
5 4,000 6,000 15,000
What is the present value of each of these three investments if
the appropriate discount rate is 15 percent?
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
End of year
a
b
c
1
$1,000
$2,000
$6,000
2
2,000
2,000
6,000
3
3,000
2,000
(6,000)
4
(4,000)
2,000
(6,000)
5
4,000
5,000
16,000
What is the present value of each of these three investments if
the appropriate discount rate is 9 percent?
You have the following information on a project's cash flows. The cost of capital is 8.0%
You have the following information on a project's cash flows. The cost of capital is 8.0%
Year
Cash flows
0
-$101,000
1
23,000
2
23,000
3
25,000
4
32,000
5
61,000
The NPV of the project is $____. Round to two decimal places.
1. You have the following information on a project's cash flows. The cost of capital is...
1. You have the following information on a project's cash flows.
The cost of capital is 16.1%.
Year
Cash Flows
0
-$105,000
1
47,000
2
13,000
3
31,000
4
39,000
5
-24,000
The NPV of the project is $____. Round to two decimal
places.
2. Given a face value of $1,000 and 19 years to maturity, what
is the price of a zero coupon bond if rates are at 6.7 percent
(assume semi-annual compounding)? (Round your answer to 2 decimal...
Ocho Corporation's net cash flows for the next three years are projected to be $2,000, $3,000,...
Ocho Corporation's net cash flows for the next three years are
projected to be $2,000, $3,000, and $4,000, respectively. After
that, the cash flows are expected to increase by 3.0 percent
annually. What is the value of the firm if its weighted average
cost of capital is 10 percent?
Group of answer choices
$32,281
$41,627
$51,523
$39,444
$47,126
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