The Blue Goose is considering a project with an initial cost of $42,000 The project will produce

Fantastic news! We've Found the answer you've been seeking!

Question:

The Blue Goose is considering a project with an initial cost of $42,000 The project will produce cash inflows of $8000 a year for the first 2 years and $12,000 a year for the next 3 years. What is the payback period?

Related Book For answer-question

Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

See More Books

Posted Date: Mar 13, 2024 05:49 AM

See More Questions

You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the...
The Spoon Restaurant is considering a project with an initial cost of $525,000. The project will not produce any cash flows for the first three years. Starting in year four, the project will produce...
1) Alpha Industries is considering a project with an initial cost of $9.7 million. The project will produce cash inflows of $1.67 million per year for 9 years. The project has the same risk as the...
PWX Inc. has the following information for its years ended June 30: Required: Calculate the accounts receivable turnover and average collection period for 20X3 and 20X2. Comment on the trend. What...
On July 16, 2013, Taylor acquires land and a building for $500,000 to use in his sole proprietorship. Of the purchase price, $400,000 is allocated to the building, and $100,000 is allocated to the...
What is another name for this quantity? Suppose it is estimated based on a large sample of births in California that 20% of mothers smoke at the time of delivery. Suppose the screening test for...
Refer to the information in Exercise 16-6. Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the...
Presented below are account balances for Monterey Hospital. In addition, cash transactions for the year ended December 31, 2012, are summarized in the T-account. Required: Using the information above...
One way in which economic growth is measured apart from GDP is in Purchasing Power Parity (PPP) terms. The Big Mac Index is the PPP concept applied to the cost of a Big Mac in different countries....
Calculate the amount of interest to be paid on a $50,000 loan over the next 28 months if money earns 8.6% p.a simple interest. Select one: O a. $120,400 b. $10,033.34 c. $836.12
Identify the triple constraints. Explain the impact of triple constraints on project quality given the presence of risk. Identify two potential risks (schedule, technical, weather, or people) that...
Consider a market with three assets (one bond, two stocks) that fulfills the assumptions of CAPM. The risky returns R and R2 are correlated with P12 1/3 and the following data is known: = R 200 R2...
Use the Arithmetic for Limits of Functions Laws justify each of your steps to evaluate the following limits.
What three key elements form the internal dynamics of a team ? Why do you think managers often tend to overlook internal dynamics when team-building? What are some of the consequences of neglecting...
An ownership interest of 15% in another company s voting stock should be accounted for using the: cost method. fair value method. consolidation method. equity method. "Sunland Company owns 17000 of...
Clay changes jobs in 2018 and decides to roll his $50,000 retirement plan balance from his old employer's plan into an IRA. He instructs the trustee of the retirement plan to transfer the money...
Factor and simplify, if possible. Check your result using a graphing calculator. 3 cot 2 + 6 cot + 3
As a member of the Finance Department of Ranch Manufacturing, your supervisor has asked you to compute the appropriate discount rate to use when evaluating the purchase of new packaging equipment for...
The Specialty Chemical Company operates a crude oil refinery located in New Iberia, Louisiana. The company refines crude oil and sells the by-products to companies that make plastic bottles and jugs....
If you deposit $3,500 today into an account earning an 11 percent annual rate of return, what would your account be worth in 35 years (assuming no further deposits)? In 40 years?
Figure P2.4 shows a graph of position versus frame number from a video clip of a moving object. Describe this motion from beginning to end, and state any assumptions you make. Data from Figure P2.4...
What minimum information must be extracted from a video clip of a moving object in order to quantify the object's motion?
The sequence in Figure P2.3 represents a ball that is initially held above the ground. In the first frame the ball is released. In subsequent frames the ball falls, bounces on the ground, rises, and...

The Blue Goose is considering a project with an initial cost of $42,000 The project will produce

Question:

Expert Answer:

To calculate the payback period you need to determine how long it takes for the cumulative cash infl... View the full answer

Financial Management Principles and Applications

Students also viewed these finance questions