Find the discounted payback period for the following project. THe discount rate is 7%.
Initial Outlay - $8,273
Year 1 - $3.774
Year 2 - $3,300
Year 3 - $5,328
Year 4 - $7,303
Round the answer to two decimal places. Show your work.
In: Finance
QUESTION 21
Calculate the payback period for a project that costs $400,000 if the cash inflows are $165,000 in year 1, $182,000 in year 2, $151,000 in year 3, and $146,000 in year 4.
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2.541 years |
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2.351 years |
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3.114 years |
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3.894 years |
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none of the above |
In: Finance
A business will take out a 10-year loan of $150,000. The interest rate is 10% per year and the loan calls for a $15,000 reduction in principal each year. What is the total payment in year 3?
Please show work by using appropriate formulas. Thank you.
In: Finance
Write a program in Cthat asks for an integer y ≥ 0, which represents a year. The program should output “YES” if the y is leap (and “NO” if it is not). A leap year is a year that has 366 days (or February 29), that is a year which is divisible by 4 but, not by 100; in exception if it is divisible by 400.
In: Computer Science
Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.
What was the absorption costing net operating income last year?
In: Accounting
You are considering the following two projects. Which project(s) should you choose?
Project | Year 0 Cash Flow | Year 1 Cash Flow | Year 2 Cash Flow | Year 3 Cash Flow | Year 4 Cash Flow | Discount Rate (r) |
A | -$120 | $40 | $40 | $40 | $40 | 15% |
B | -$90 | $30 | $30 | $30 | $30 | 15% |
In: Finance
Step's Music Lessons Inc. is a calendar-year taxpayer using the accrual method of accounting. On September 1 of this year, the corporation received $1,800 for a one-year contract beginning on that date to provide 8 lessons. The company provided 5 lessons this year under the contract. How much should the corporation include in income this year with respect to this contract?
A) $900 B) $1,125 C) $1,275 D) $1,800
In: Accounting
An investor purchases a small investment property for $300,000 with a $30,000 deposit. The property appreciates by 15% over 3 years of ownership. During that time the property generates an effective gross income of $7,000 in year 1,$6,000 in year 2 and $7,000 in year 3 with level operating expenses of $5,000 per year. The debt service payment is $1,500 per year. What is the cash-on-cash return for the investment?
In: Finance
7. An investment has a cost of $2000. The investment will have a payout of X at the end of the first year. This initial payout X will grow at the rate of 10% per year for the next 3 years, then by 6% per year for the next 2 years, and then at the rate of 4% per year for the following 1 year. You believe the riskiness of this investment is 9%.
a. Calculate the smallest X that would entice you to invest.
In: Finance
Equipment maintenance costs for manufacturing explosion-proof
pressure switches are projected to be $100,000 in year 1 and
increase by 4% each year through year 5.
What is the present worth of the maintenance costs at an interest
rate of 10% per year, compounded quarterly for the first 3 years,
if the interest rate for years 4 and 5 are 10%/year compounded
monthly? (solve by hand DON'T use Excell program)
In: Economics