Question
In: Finance
Determine the Payback Period, the Discounted Payback Period, and the Net Present Value for the following...
Determine the Payback Period, the Discounted Payback Period, and the Net Present Value for the following after-tax cash flow projections. Also tell me whether the IRR is greater or less then the RRR
B. Year ATCF
0 (100,000)
1 (320,000)
2 130,000
3 185,000
4 200,000
5 195,000
6 150,000
Assume a 20% required rate of return
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Determine the Payback Period, the Discounted Payback Period, and the Net Present Value for the following...
Determine the Payback Period, the Discounted Payback Period, and
the Net Present Value for the following after-tax cash flow
projections. Also tell me whether the IRR is greater or less then
the RRR.
A. Year ATCF
0 $(60,000)
1 21,000
2 27,000
3 24,000
4 16,000
Assume a 16% required rate of return
For the following two projects, determine the Payback Period Discounted Payback Net Present Value Profitability Index...
For the following two projects, determine the
Payback Period
Discounted Payback
Net Present Value
Profitability Index (Benefit-Cost Ratio)
Internal Rate of Return
Modified Internal Rate of Return
Project A
Project B
Year
Net Income
Cash Flow
Net Income
Cash Flow
0
(15,000)
(19,000)
1
5,000
6,000
3,000
4,000
2
5,000
6,000
5,000
6,000
3
5000
6,000
7,000
8,000
4
5,000
6,000
11,000
12,000
Risk Index
1.80
.60
The firm’s cost of capital ko is 15% and the risk
free...
Please Calculate the WACC, the discounted payback period, and the net present value for the following...
Please Calculate the WACC, the discounted payback period, and
the net present value for the following scenario. Show all work and
clearly show how you came to your answers.
A municipal stadium owned by a city stadium authority is
thinking about updating it's grass field to turf. New turf will
cost $750,000. A local company has offered to give you $100,000 to
put their logo on the turf, which you will happily take if you
decide to go forward with...
Capital Budgeting Assignment For the following two projects, determine the Payback Period Discounted Payback Net Present...
Capital Budgeting Assignment
For the following two projects, determine the
Payback Period
Discounted Payback
Net Present Value
Profitability Index (Benefit-Cost Ratio)
Internal Rate of Return
Modified Internal Rate of Return
Project A
Project B
Year
Net Income
Cash Flow
Net Income
Cash Flow
0
(15,000)
(19,000)
1
5,000
6,000
3,000
4,000
2
5,000
6,000
5,000
6,000
3
5000
6,000
7,000
8,000
4
5,000
6,000
11,000
12,000
Risk Index
1.80
.60
The firm’s cost of capital ko is 15% and...
the following techniques for analyzing projects: Payback Rule Discounted Payback Period Net Present Value Internal Rate...
the following techniques for analyzing projects:
Payback Rule
Discounted Payback Period
Net Present Value
Internal Rate of Return
Why must corporate managers use multiple techniques of project
evaluation?
Which technique is most commonly used and why?
Describe several ways the techniques above can be used as one
progresses in their professional career. (Identify specific types
of projects that can be analyzed and discuss the advantages and
disadvantages of using the techniques above)
Calculate? (a) net present? value, (b) payback? period, (c) discounted payback? period, and? (d) internal rate...
Calculate? (a) net present? value, (b) payback? period, (c)
discounted payback? period, and? (d) internal rate of return.
Cost of the equipment
$166,000
Reduced labor costs
$45,000
Estimated life of the equipment
10
years
Terminal disposal value
?$0
?After-tax cost of capital
12
?%
Tax rate
20
?%
Assume depreciation is calculated on a? straight-line basis for
tax purposes. Assume all cash flows occur at? year-end except for
initial investment amounts.
Calculate? (a) net present? value, (b) payback? period, (c)...
Net Present Value and Discounted Payback Period Using the amount of capital expenditures incurred in 2018...
Net Present Value and Discounted Payback Period
Using the amount of capital expenditures incurred in 2018
-1976.4 (which will consider to be an initial investment outflow),
assume the company will generate operating cash inflows of $205
million the first year, $385 million the second year, $478 million
the third year, $599 million the fourth year, $625 million the
fifth year, and $100 million the year six.
a.) What is the NPV using the company’s WACC of 3.56 and what is...
Calculate the discounted payback, net present value, and internal rate of return for the following cash...
Calculate the discounted payback, net present value, and
internal rate of return for the following cash flows. -60, -50, 6,
45, 60, 70, 60, 45, 20. Discount rate at 7%. Please show work for
the internal rate of return calculation.
Use the discounted payback method, the net present value method, and the profitability index method to...
Use the discounted payback method, the net present value method,
and the profitability index method to evaluate the following
project:
Year 0 Initial Investment 900,000
Year 1 Income 175,000
Year 2 Income 450,000
Year 3 Additional investment 100,000
Year 4 Income 630,000
Discount rate 7%
DPB __________ years
NPV ______________
PI ______________
Would you recommend that the board accept or reject this
project? ________________ Accept or reject
Net Present Value and Other Investment Criteria Payback Period - Concerning payback: a. Describe how the...
Net Present Value and Other Investment Criteria
Payback Period - Concerning payback:
a. Describe how the payback period is calculated, and describe
the information this measure provides about a sequence of cash
flows. What is the payback criterion decision rule?
b. What are the problems associated with using the payback
period to evaluate cash flows?
c. What are the advantages of using the payback period to
evaluate cash flows? Are there any circumstances under which using
payback might be appropriate?...
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