Question

In: Finance

What is the payback period for the following set of cash flows?     Year Cash Flow...

What is the payback period for the following set of cash flows?

   

Year Cash Flow
0 −$ 4,200       
1 2,500       
2 2,600       
3 2,600       
4 1,900       

Solutions

Expert Solution

Solution :

The payback period for the given set of cash flows is = 1.6538 years

= 1.65 years ( when rounded off to two decimal places )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the above solution.


Related Solutions

What is the payback period for the following set of cash flows? Year   Cash Flow 0...
What is the payback period for the following set of cash flows? Year   Cash Flow 0 -5,360 1 1,591 2 1,572 3   1,531 4     1,800
What is the payback period for the following set of cash flows? Year Cash Flow 0...
What is the payback period for the following set of cash flows? Year Cash Flow 0 −$ 3,900 1 1,000 2 2,000 3 1,100 4 2,900 Multiple Choice 3.12 years 2.82 years 2.77 years 2.84 years 2.96 years
What is the payback period for the following set of cash flows? Year      Cash Flow 0          ...
What is the payback period for the following set of cash flows? Year      Cash Flow 0           -$6,400 1             1,600 2             1,900 3             2,300 4             1,400 A. 3.38 years B. 3.45 years C. 3.60 years D. 3.43 years E. 3.73 years
A. What is the payback period for the following set of cash flows?    Year Cash...
A. What is the payback period for the following set of cash flows?    Year Cash Flow 0 −$ 5,300        1 2,300        2 2,300        3 1,400        4 1,100        B. A project with an initial cost of $22,350 is expected to generate cash flows of $5,200, $7,300, $8,400, $7,300, and $6,000 over each of the next five years, respectively. What is the project's payback period? C. A new project has an initial cost of $133,000. The...
(Payback period​) What is the payback period for the set of cash flows in the popup​...
(Payback period​) What is the payback period for the set of cash flows in the popup​ window, LOADING... ​? The payback period for the set of cash flows is nothing years. 0 -11,200 1 3,800 2 4,800 3 3,700 4 4,600 5 3,200 ​ (Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$75,000 and expected free cash flows of ​$22,000 at the end of each year for 6 years. The...
Find the discounted payback period for the following cash flows. Year Cash Flow 0 -450,000 1...
Find the discounted payback period for the following cash flows. Year Cash Flow 0 -450,000 1 135,000 2 155,000 3 165,000 4 200,000 Assume a discount rate of 9%. Round your answer to two decimal places.
(1).     What is the payback period of an investment with the following cash flows?             Year     ...
(1).     What is the payback period of an investment with the following cash flows?             Year      Cash Flow             0            -60,000             1            30,000             2            20,000             3            15,000             4            10,000             5            5,000 (2). A project has the following cash flows: Year                     Cash Flow 0                          -$4,000 1                            2,000 2                            2,000 3                            2,000 4                            2,000 Its cost of capital is 10 percent. What is the project’s discounted payback period?
What is the payback period for the investment project that has the following cash flows? Year...
What is the payback period for the investment project that has the following cash flows? Year Cash Flows 0 -65,209 1 24,853 2 27,977 3 23,774 4 25,436
What is the IRR of the following set of cash flows?     Year Cash Flow 0...
What is the IRR of the following set of cash flows?     Year Cash Flow 0 –$11,768             1 6,500             2 5,400             3 6,200             24.09% 25.36% 26.63% 25.87% 24.85%
What is the IRR of the following set of cash flows?    Year Cash Flow 0...
What is the IRR of the following set of cash flows?    Year Cash Flow 0 –$11,280             1 6,200             2 4,200             3 6,100             Multiple Choice 21.46% 21.9% 22.34% 20.8% 23%
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT