Question

In: Finance

Gio's Restaurants is considering a project with the following expected cash​ flows: . If the​ project's...

Gio's Restaurants is considering a project with the following expected cash​ flows: . If the​ project's appropriate discount rate is 11 ​percent, what is the​ project's discounted payback​ period?

YEAR

PROJECT

CASH FLOW

   0

−​$240240

million

   1

       100100

million

   2

       6060

million

   3

       100100

million

   4

     100100

million

Solutions

Expert Solution

Computation of discounted payback period
year Cash flow PVIF @ 11% Present value Cumulative present value
0 -240240 1       (240,240)       (240,240)
1 100100 0.900901           90,180       (150,060)
2 6060 0.811622             4,918       (145,141)
3 100100 0.731191           73,192         (71,949)
4 100100 0.658731           65,939           (6,010)
Since, cumulative present value if not positive at the end of the project duration (4 year)
Therefore project will not have any discounted payback period.
answer = Undeterminable

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Gio's Restaurants is considering a project with the following expected cash​ flows: LOADING.... If the​ project's...
Gio's Restaurants is considering a project with the following expected cash​ flows: LOADING.... If the​ project's appropriate discount rate is 11 ​percent, what is the​ project's discounted payback​ period? YEAR PROJECT CASH FLOW     0 ​$210 million     1        90 million     2        60 million     3        85 million     4      100 million
Gio's Restaurants is considering a project with the following expected cash​ flows: Year Project Cash Flow​...
Gio's Restaurants is considering a project with the following expected cash​ flows: Year Project Cash Flow​ (millions) 0 ​$(180​) 1 80 2 75 3 80 4 95 If the​ project's appropriate discount rate is 12 ​percent, what is the​ project's discounted payback​ period? The​ project's discounted payback period is ___ years.
​(Discounted payback period​) ​ Gio's Restaurants is considering a project with the following expected cash​ flows:...
​(Discounted payback period​) ​ Gio's Restaurants is considering a project with the following expected cash​ flows: Year Project Cash Flow​ (millions) 0 ​$(240​) 1 100 2 75 3 100 4 110 If the​ project's appropriate discount rate is 11 ​percent, what is the​ project's discounted payback​ period? The​ project's discounted payback period is nothing years.  ​(Round to two decimal​ places.)
(Discounted payback period​) ​ Gio's Restaurants is considering a project with the following expected cash​ flows:...
(Discounted payback period​) ​ Gio's Restaurants is considering a project with the following expected cash​ flows: Year Project Cash Flow​ (millions) 0 ​$(150​) 1 90 2 70 3 90 4 100 If the​ project's appropriate discount rate is 12 ​percent, what is the​ project's discounted payback​ period? The​ project's discounted payback period is nothing years.  ​(Round to two decimal​ places.)
(Discounted payback period​)​ Gio's Restaurants is considering a project with the following expected free cash​ flows:...
(Discounted payback period​)​ Gio's Restaurants is considering a project with the following expected free cash​ flows: LOADING... . If the​ project's appropriate discount rate is 9 ​percent, what is the​ project's discounted payback​ period? The​ project's discounted payback period is nothing years.YEAR PROJECT CASH FLOW 0 -150 1 85 2 80 3 80 4 100
​(Discounted payback period​)​ Gio's Restaurants is considering a project with the following expected cash​ flows:  0...
​(Discounted payback period​)​ Gio's Restaurants is considering a project with the following expected cash​ flows:  0 - 210 million    1        95 million    2        75 million    3        95 million    4      90 million If the​ project's appropriate discount rate is 11 ​percent, what is the​ project's discounted payback​ period? The​ project's discounted payback period is _____years.
firm is considering a project with the following expected cash flows: Year Cash Flow 0 -P350...
firm is considering a project with the following expected cash flows: Year Cash Flow 0 -P350 million 1 100 million 2 185 million 3 112.5 million 4 350 million The project’s WACC is 10 percent. What is the project’s discounted payback? a. 3.15 years b. 4.09 years c. 1.62 years d. 3.09 years The lolo Corporation has been presented with an investment opportunity that will yield end-of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per...
Samsung. is considering a project that has the following cash flow data. What is the project's...
Samsung. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 Cash flows -$1,025 $425 $425 $425
You are considering a project with an initial cash outlay of ​$72,000 and expected cash flows...
You are considering a project with an initial cash outlay of ​$72,000 and expected cash flows of ​$22,320 at the end of each year for six years. The discount rate for this project is 10.5 percent. a.  What are the​ project's payback and discounted payback​ periods? b.  What is the​ project's NPV? c.  What is the​ project's PI? d.  What is the​ project's IRR? a.  The payback period of the project is nothing years.
You are considering a project with an initial cash outlay of ​$87000 and expected cash flows...
You are considering a project with an initial cash outlay of ​$87000 and expected cash flows of ​$23490 at the end of each year for six years. The discount rate for this project is 10.1 percent. a. What are the​ project's payback and discounted payback​ periods? b. What is the​ project's NPV? c. What is the​ project's PI? d. What is the​ project's IRR?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT