Question

In: Finance

Project L costs $70,000, its expected cash inflows are $10,000 per year for 9 years, and...

Project L costs $70,000, its expected cash inflows are $10,000 per year for 9 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

Solutions

Expert Solution

Calculation of payback period:
Time Amount Cumulative
                                                                                      -         (70,000.00)                                           (70,000.00)
                                                                                 1.00         10,000.00                                           (60,000.00)
                                                                                 2.00         10,000.00                                           (50,000.00)
                                                                                 3.00         10,000.00                                           (40,000.00)
                                                                                 4.00         10,000.00                                           (30,000.00)
                                                                                 5.00         10,000.00                                           (20,000.00)
                                                                                 6.00         10,000.00                                           (10,000.00)
                                                                                 7.00         10,000.00                                                             -  
                                                                                 8.00         10,000.00                                              10,000.00
                                                                                 9.00         10,000.00                                              20,000.00
                                                                               10.00         10,000.00                                              30,000.00
                                                                               11.00         10,000.00                                              40,000.00
Payback period is 7 years

jeff jeffy answered 10 months ago
Next > < Previous

Related Solutions

Project L costs $70,000, its expected cash inflows are $10,000 per year for 8 years, and...
Project L costs $70,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.   %
Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and...
Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is 13%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places.
NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years,...
NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $ Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $44,206.49, its expected cash inflows are $9,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer...
NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years,...
NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $ Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $44,206.49, its expected cash inflows are $9,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer...
Project L costs $47,089.43, its expected cash inflows are $10,000 per year for 11 years, and...
Project L costs $47,089.43, its expected cash inflows are $10,000 per year for 11 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $55,000, its expected cash inflows are $10,000 per year for 12 years, and...
Project L costs $55,000, its expected cash inflows are $10,000 per year for 12 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Project L costs $48,086.22, its expected cash inflows are $10,000 per year for 11 years, and...
Project L costs $48,086.22, its expected cash inflows are $10,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $40,000, its expected cash inflows are $10,000 per year for 10 years, and...
Project L costs $40,000, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
Project L costs $47,974.56, its expected cash inflows are $10,000 per year for 10 years, and...
Project L costs $47,974.56, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $35,000, its expected cash inflows are $10,000 per year for 8 years, and...
Project L costs $35,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 9%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places.   years:
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT