Gios Restaurants is considering a project with the following expected cash flows: If the projects appropriate discount
Question:
If the project€™s appropriate discount is 12 percent, what is the project€™s discounted payback?
Transcribed Image Text:
PROJECT YEAR CASH FLoW -$150 million 90 million 70 million 90 million 100 million 0 4
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
Initial Outlay 150000000 Required rate of return 12 Cash flows Discounted ...View the full answer
Answered By
OTIENO OBADO
I have a vast experience in teaching, mentoring and tutoring. I handle student concerns diligently and my academic background is undeniably aesthetic
4.30+
3+ Reviews
10+ Question Solved
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Question Posted:
Students also viewed these Corporate Finance questions
-
You are considering a project with the following cash flows: If the appropriate discount rate is 10 percent, what is the projects discounted payback period?
-
Arties Wrestling Stuff is considering building a new plant. This plant would require an initial cash outlay of $ 8 million and will generate annual free cash inflows of $ 2 million per year for 8...
-
You are considering a project with an initial cash outlay of $ 80,000 and expected free cash flows of $ 20,000 at the end of each year for 6 years. The required rate of return for this project is 10...
-
Accurate Job Costing must be done on three levels. Which of the following is not one of these levels? Tracking and controlling costs during jobs Tracking gross profit each month Filing records on...
-
In McCormack v. Safeway, included as a Legal Briefcase in this chapter, the plaintiffs brought a retaliation claim along with their sexual harassment claims. Less than a month after reporting the...
-
Longest common strictly increasing subsequence. Given two integer arrays, find the longest increasing subsequence that is common to both arrays.
-
A new high-definition television costing $\$ 2,999$ is on a rent-to-own plan and is to be paid in 18 end-of-month payments (starting one month from now). The monthly payments are determined as...
-
(a) Consider a uniformly charged thin-walled right circular cylindrical shell having total charge Q, radius R, and height h. Determine the electric field at a point a distance d from the right side...
-
A $1,000 par value bond has an 8% coupon rate (paid semiannually). It has 5 years remaining to maturity. If bond's current price $1, 179.65, what should be the YTM of this bond?
-
Stanford Enterprises has provided its manufacturing estimated and actual data for the year end. The Controller has asked you to compute the predetermined overhead rate, the schedule of cost of goods...
-
Calculate the PI given the following cash flows if the appropriate required rate of return is 10%. YEAR CASH FLOWS 0.......... -$ 55,000 1.......... 10,000 2.......... 10,000 3.......... 10,000...
-
Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $ 100,000 and the following cash flows? Year 1 = $ 30,000 Year 2 = $...
-
In Problems below , a function and its graph are given. 1. 2. (a) From the graph, estimate where f ''(x) Ë 0, where f ''(x) Ë 0, and where f ''(x)=0. (b) Use (a) to decide where f '(x) has...
-
Consider a hypothetical Control Unit which supports 8 k words. The Hardware contains 64 internal control signals, 16 bus control signals, 8 Flags and 8 branch conditions. What is the size of control...
-
On December 31, Foster Co. had the following list of accounts and their respective annual balances. Accounts Payable $ 25,800 Dividends $ 10,700 Accounts Receivable 26,100 Legal Expense 8,100...
-
Which international acquisition and exportability objective addresses the need to strengthen domestic and allied defense industrial bases? Explain.
-
Discuss the direct correlation between an effective value chain and a firm's competitive advantage by examining the relationship between: Effective value chain management Customer delight...
-
In the e/m of the Electron experiment, the beam of electrons is moving in a magnetic field created by a pair of Helmholtz coils. What is the parameter "a" related to the Helmholtz coil? Explain.
-
The employee benefits manager of a small private university would like to know the proportion of its full-time employees who prefer adopting each of three available health care plans in the...
-
Highland Theatre is owned by Finnean Ferguson. At June 30, 2014, the ledger showed the following: Cash, $6,000; Land, $100,000; Buildings, $80,000; Equipment, $25,000; Accounts Payable, $5,000;...
-
Zenith Co. s bonds mature in 12 years and pay 7 percent interest annually. If you purchase the bonds for $ 1,150, what is your expected rate of return?
-
Assume the market price of a 5- year bond for Margaret Inc. is $ 900, and it has a par value of $ 1,000. The bond has an annual interest rate of 6 percent that is paid semi-annually. What is the...
-
Assume you have a bond with a semiannual interest payment of $ 35, a par value of $ 1,000, and a current market of $ 780. What is the current yield of the bond?
-
Explain a typical structural engineering project shown in figure. Planning Preliminary structural design Load estimation Structural analysis Safety/serviceability Yes Construction No Revised...
-
What are the 4 specialties of structural engineering? Any resources for core principles of structural engineering?
-
what are the role of structural analysis in structural engineering? What is the difference between structural engineering and structural analysis?
Study smarter with the SolutionInn App