Question
In: Finance
You are considering a project with the following cash flows: YEAR PROJECT CASH FLOW ...
You are considering a project with the following cash flows:
YEAR PROJECT CASH FLOW
0 -60,000
1 25,000
2 25,000
3 25,000
4 25,000
If the appropriate discount rate is 11 percent, what is the project's discounted payback period in years?
Solutions
Expert Solution
Ans 2.94 years
| Year | Project Cash Flows (i) | DF@ 11% (ii) | PV of Project A ( (i) * (ii) ) | Cumulative Cash Flow | |
| 0 | -60000 | 1 | (60,000.00) | (60,000.00) | |
| 1 | 25000 | 0.901 | 22,522.52 | (37,477.48) | |
| 2 | 25000 | 0.812 | 20,290.56 | (17,186.92) | |
| 3 | 25000 | 0.731 | 18,279.78 | 1,092.87 | |
| 4 | 25000 | 0.659 | 16,468.27 | 17,561.14 | |
| 17,561.14 | |||||
| Discounted Payback Period = | 2 years + 17186.992/18279.78 | ||||
| 2.94 years | |||||
jeff jeffy answered 10 months agoRelated Solutions
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.
Mega Dynamics is considering a project that has the following cash flows: Year Project Cash Flow...
Mega Dynamics is considering a project that has the following
cash flows:
Year
Project Cash Flow
0
?
1
$2,000
2
3,000
3
3,000
4
1,500
The project has an IRR of 17% . The firm's cost of capital is 11
percent. What is the project's net present value (NPV)?
Tipton Industries is considering a project that has the following cash flows: Year Cash Flow 0...
Tipton Industries is considering a project that has the
following cash flows:
Year Cash Flow
0 -6,500
1 2,000
2 3,000
3 3,000
4 1,500
The project has a WACC (cost of capital) of 12%
a. what is the firm's payback?
b. what is the NPV?
c. what is the IRR?
d. is this profit profitable? explain
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...
Polk Products is considering an investment project with the following cash flows: Year Cash Flow 0...
Polk Products is considering an investment project with the
following cash flows: Year Cash Flow 0 -$100,000 1. 20,000 2.
90,000 3. 30,000 4. 60,000 The company has a 10 percent cost of
capital. What is the project's discounted payback?
1.86 years
1.67 years
2.67 years
2.49 years
2.33 years
(Discounted payback period) You are considering a project with the following cash flows: YEAR PROJECT CASH...
(Discounted payback period) You are considering a project with
the following cash flows:
YEAR PROJECT
CASH FLOW
0 -40,000
1 15,000
2 15,000
3 15,000
4 15,000
If the appropriate discount rate is 12 percent, what is the
project's discounted payback period?
The project's discounted payback period is ___ years. (Round to
two decimal places.)
There is a project with the following cash flows : Year Cash Flow 0 −$21,800 1...
There is a project with the following cash flows :
Year
Cash Flow
0
−$21,800
1
6,300
2
7,350
3
6,750
4
4,400
What is the payback period?
Multiple Choice
a. 4.00 years
b. 3.32 years
c. 3.74 years
d. 3.56 years
e. 2.79 years
There is a project with the following cash flows : Year Cash Flow 0 −$23,700 1...
There is a project with the following cash flows :
Year
Cash Flow
0
−$23,700
1
7,000
2
7,700
3
7,100
4
5,100
What is the payback period?
Multiple Choice
2.73 years
4.00 years
3.81 years
3.63 years
3.37 years
RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
RAK Corp. is evaluating a
project with the following cash flows:
Year
Cash Flow
0
–$
28,600
1
10,800
2
13,500
3
15,400
4
12,500
5
–
9,000
The company uses a discount rate
of 13 percent and a reinvestment rate of 6 percent on all of its
projects.
Calculate the MIRR of the project using the discounting
approach. (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)...
Mittuch Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$...
Mittuch Corp. is evaluating a project with the following cash
flows: Year Cash Flow 0 –$ 15,400 1 6,500 2 7,700 3 7,300 4 6,100 5
–3,500 The company uses an interest rate of 8 percent on all of its
projects. Calculate the MIRR of the project using all three
methods. (Do not round intermediate calculations and enter your
answers as a percent rounded to 2 decimal places, e.g., 32.16.)
MIRR Discounting approach % Reinvestment approach % Combination
approach %
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Originality is a “must” in research. Therefore, use your own words when answering questions - DO...
- Explain the purpose and importance of the business plan 1 PAGE
- Your company (US-based organization) is expected to receive 4 million British pounds in nine months. You...
- 4 Neutron interactions within nuclear power systems. a) Explain with quantification the terms ‘thermal’ and ‘fast’...
- Consider the market for minivans. For each of the events listed below: → identify which of...
- A hedge fund manager shorted 800 shares of XYZ stock at $65/share and she plans to...
- . What are common factors across psychotherapies? What psychotherapies are typically used for what disorders
ADVERTISEMENT