1. What is the payback periodfor the following set of cash flows? Year Cash Flow 0 ?$...
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Question:
1. What is the payback periodfor the following set of cash flows? |
Year | Cash Flow |
0 | ?$ 7,200 |
1 | 2,700 |
2 | 1,400 |
3 | 1,700 |
4 | 2,600 |
2. An investment project hasannual cash inflows of $6,000, $7,100, $7,900, and $9,200, and adiscount rate of 16 percent. |
Required:
What is the discounted payback period for these cash flows ifthe initial cost is $9,500?
|
4. What is the internal rate of return on an investment with thefollowing cash flows? |
Year | Cash Flow |
0 | –$118,000 |
1 | 44,900 |
2 | 32,500 |
3 | 48,750 |
5. What is the profitability index for an investment with thefollowing cash flows given a 6 percent required return? |
Year | Cash Flow |
0 | –$21,000 |
1 | 7,700 |
2 | 10,000 |
3 | 9,400 |
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
Posted Date: