Question: Consider the following four-year project. The initial outlay or cost is $180,000. The respective cash inflows for years 1, 2, 3 and 4 are: $110,000,

Consider the following four-year project. The initial outlay or cost is $180,000. The respective cash inflows for years 1, 2, 3 and 4 are: $110,000, $80,000, $80,000 and $20,000. What is the payback period?

Step by Step Solution

★★★★★

3.31 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Discounted cash flows are 1... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1365-B-C-A-B(4064).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

1) Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries? A) 9.0% B) 10.0% C) 4.0% D) 13.0%...

Consider the following project for Hand Clapper, Inc. The company is considering a four-year project to manufacture clap-command garage door openers. This project requires an initial investment of $8...

Consider the following project for Hand Clapper, Inc. The company is considering a four-year project to manufacture clap-command garage door openers. This project requires an initial investment of...

Acme, Inc. is considering a four year project that has initial outlay or cost of $100, 000 The respective rash inflows for years 1, 2, 3 and 4 are: $50, 000, $40, 000, $30, 000 and $20, 000. Acme...

70) Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of 13.1%. Asset C has a beta of .50 and an expected return of 7.50%. The risk-free rate is 4% and the...

Company PTY is evaluating two assets, A and B. Details about each of the asset is listed in the table below. Assume each asset has a useful life of five years and depreciated on straight-line basis....

Apple, Inc is considering Project A and Project B, which are two mutually exclusive projects with unequal lives Project A is an eight-year project that lias an initial outlay or cost of $140, 000 Its...

(a) The initial outlay or cost is $1, 000, 000 for a 4 year project. The respective future inflows for years 1, 2, 3 and 4 are $500, 000, $300, 000, $300, 000 and $300, 000. What is the payback...

DSC1630_$1 Ass1-4_20: X + v X file:///C:/Users/support1/Desktop/DSC1630_S1620Ass1-4_2022.pdf . .. 17 of 21 O + 2 Fit to page Page view A' Read aloud . Add notes An investment with an initial outlay...

1. Tokyo Rubber Corporation is considering two mutually exclusive projects for their future investment. The initial cost outlay associate with Dry Prepreg is RM100,000 and Solvent Prepreg is...

Given the information below, calculate the break-even (in units) for Compas Track Company produces compasses for cross-country compasses. Selling price $40 per unit Fixed factory rent $550,000 per...

What is the purpose of the filing of an answer by the defendant?

When trading on margin, the investor borrows money from a certain type of brokerage firm, which in turn borrows the money from a larger, more capitalized, brokerage firm.

What relationship does the aggregate production function portray? Which of the production functions variables are endogenous and which are exogenous?

In this problem you will be calculating compound interest on 4 different deposit amounts. For each deposit amount, you will calculate the value of the deposit using 2 different interest rates...

You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years Cash Flow 0 100 110 + 18 On the...

On August 1 , 2 0 2 2 , Colombo Company's treasurer signed a note promising to pay $ 1 2 3 , 0 0 0 on December 3 1 , 2 0 2 2 . The proceeds of the note were $ 1 1 4 , 9 0 0 . c . 1 . Use the...