Question: 5 Part Question. Please answer all 5 parts and round to 2 decimal places when required, to get thumbs up please! 1.a) Suppose a company
5 Part Question. Please answer all 5 parts and round to 2 decimal places when required, to get thumbs up please!
1.a) Suppose a company had an initial investment of $40'000. The cash flow for the next 5 years are $13000, $11000, $11000, $15000 and $14000 respectively. What is the payback period? (round to 2 decimal places)
B) If the firm accepts projects with the payback periods of less than 4 years, will this project be accepted? Yes or NO
C) Suppose a company wants to build a cruise ship that has an investment of $100 million. It is estimated to provide an annual cash flow over the next 20 years of $16 million per year. The discount rate is 10%. What is the discounted payback period? (round to 2 decimal places)
d) Suppose a company had an initial investment of $50000. The cash flow for the next 5 years are $17000, $20000, $20000, $17000 and $20000 respectively. The interest rate is 8%. What is the discounted payback period? Round to 2 decimal places
e) What is the NPV of the project? (Given in D) round to 2 decimal places
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
