Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project
Question:
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 free cash flows?
Year 1 = $30,000
Year 2 = $35,000
Year 3 = $25,000
Year 4 = $25,000
Year 5 = $30,000
Year 6 = $20,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (5 reviews)
Initial outlay 100000 Required rate of return 11 percent Cash flows Year Cash flows Dis...View the full answer
Answered By
Sanjay kumar
Hi there! My name is Muhammed Mundhir p, and I've always been drawn to the technical side of things, and studying astrophysics has given me a chance to really stretch my analytical and critical thinking skills. From studying the behavior of black holes to exploring the mysteries of dark matter, there's always something new and exciting to learn in this field.
0.00
0 Reviews
10+ Question Solved
Related Book For
Foundations Of Finance
ISBN: 9780135160619
10th Edition
Authors: Arthur J. Keown, John H. Martin, J. William Petty
Question Posted:
Students also viewed these Business questions
-
A project with an initial outlay of 1m has a 0.2 probability of producing a return of 800,000 in Year 1 and a 0.8 probability of delivering a return of 500,000 in Year 1. If the 800,000 result occurs...
-
Coast Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $54,000 a year at...
-
1. How are chaining pins used when taping lengths? (2 points) 2. Calculate the corrected length for a measured length of 346.56. The tape used was a 100- ft steel tape that was calibrated as 99.994....
-
can you complete this concept map that reviews some key ideas about species and speciation logy with Lab Connecting the Concepts: Species and Speciation oncepts: Species and Speciation oncept map...
-
The following figures show the results of simulations that do not follow the assumptions of the Poisson process. Can you identify how they differ? 1. 2. 3. 4. 012 345 67 89 10 Time 0.2345678910 Time...
-
How might leaders navigate the complexities of cross-functional or matrixed organizational structures when delegating tasks and responsibilities, leveraging influence and negotiation skills to secure...
-
Ronda Rousey Fight Times Perhaps the most popular fighter since the turn of the decade, Ronda Rousey is famous for defeating her opponents quickly. The five number summary for the times of her first...
-
Assume the following facts for Munoz Company in 2016. Munoz reported pretax financial income of $ 800,000. In addition, Munoz reported the following differences between its pretax financial income...
-
Shouldthe project be accepted using the IRR and NPV methods? WACC 9% Cost of machine2 million Working capital needed at time 0 is $250,000 none is recovered at projects end Cash flow year 1 $500,000...
-
Cathys Cuisine Ltd. is a small restaurant and catering business started three years ago by Cathy Crosby. Initially, the companys operations consisted of a small diner. In 2019, the company added the...
-
What is the payback period for the following set of cash flows? YEAR CASH FLOWS 1 . $11,300 2 . 3,400 3 . 4,300 4 . 3,600 5 . 4,500 6 . 3,500
-
Dunder Mifflin Paper Company is considering purchasing a new stamping machine that costs $400,000. This new machine will produce free cash inflows of $150,000 each year at the end of years 1 through...
-
Alpha Software, Inc., announced a new computer operating system to be marketed under the name McSoftware. McDonalds Corp. wrote Alpha a letter stating that the use of this name infringed on the...
-
The accounting staff of Usher Inc. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked for your assistance in...
-
A wave traveling along a string is described by the timedependent wave function \(f(x, t)=a \sin (b x+q t)\), with \(a=0.0268 \mathrm{~m}, b=5.85 \mathrm{~m}^{-1}\), and \(q=76.3 \mathrm{~s}^{-1}\)....
-
At December 31, 2015, the equity investment portfolio for Wenger, Inc. is as follows. On January 20, 2016, Wenger, Inc. sold investment A for $15,300. The sale proceeds are net of brokerage fees....
-
Kramer Co. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and...
-
Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an...
-
MAP Consulting Inc. has 50,000 shares of 1% preferred stock of $100 par and 200,000 shares of $25 par common stock. The following amounts were distributed each year: Year 1: $120,000 Year 2: $100,000...
-
Anne is employed by Bradley Contracting Company. Bradley has a $1.3 million contract to build a small group of outbuildings in a national park. Anne alleges that Bradley Contracting has discriminated...
-
You purchased a bond for $ 1,100. The bond has a coupon rate of 8 percent, which is paid semiannually. It matures in 7 years and has a par value of $ 1,000. What is your expected rate of return?
-
You own a 20- year, $ 1,000 par value bond paying 7 percent interest annually. The market price of the bond is $ 875, and your required rate of return is 10 percent. a. Compute the bonds expected...
-
Calculate the value of a bond that will mature in 14 years and has a $ 1,000 face value. The annual coupon interest rate is 5 percent, and the investors required rate of return is 7 percent.
-
Implement the definition of the function rotate ToLeft(), member of the DArray class, so that it rotates all the elements of the array object to the left by one position. Example: [6, 2, 5, 3] [2, 5,...
-
Write the definition of the of the function is Full() as a member function of the DArray class. The function returns true if the array is full, or false otherwise. Functions.cpp 1 #include "DArray.h"...
-
Write a program that will calculate the trajectory of a golf ball thrown with a velocity of 25.6 m/s at an angle of 0 = 35 relative to the horizontal, from a hill that is 2.1 meters above the ground...
Study smarter with the SolutionInn App