Question: A construction project has the following data: initial disbursement $ 400,000. The required rate of return is 9% per year. Net cash income for the

A construction project has the following data: initial disbursement $ 400,000. The required rate of return is 9% per year. Net cash income for the following years:

1st. year $ 87,000 =

2nd. years $ 106,500 =

3rd. years $ 192,000 =

4th. years $ 184,800 =

5th. years $ 184,800 =

Net Present Value _____________

Determine the payback present value _______

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Acme Food Co. Ltd. is considering the introduction of a new product Smackers. The firm has gathered and provided your group the following information relevant to the project: Initial fixed capital...

8.2 Pacific Products Inc. is considering the introduction of a new product, Alpha. The firm has gathered the following information relevant to the project: Initial fixed capital outlay: $120,000...

Hi there, I need to answer question question three. I have completed part1 but haven't done part 2,3 and 4 for question 3: Financial statement analysis below i have attached my work which you will...

The ideal decision-making criteria should do which of the following? Select all that apply. incorporate the required rate of return on the project be subject to management's cutoff for payoff...

show how you get the result. (Formula and step) Thank you! ------------ Quiz 6 Chpt. 7,8,9Capital Budgeting 1.You are evaluating purchasing the rights to a project that will generate after tax...

Babies-R-Us Ltd manufactures a range of prams and pushchairs for babies. The following is an extract from the companys most recent statement of financial position: Equity and liabilities R Ordinary...

Multiple Choice Questions 1. Which is the main body responsible for overseeing the regulation of companies in Australia? A. The Institute of Chartered Accountants in Australia B. The Australian...

Multiple Choice : Choose the best possible answer. Please be guided by the INSTRUCTIONS given in this material. Include solution for the problems. 1. Daffodil Corporation, requires a minimum return...

Do question 1 and 2. ACC211 Examination - January Semester 2014 Advanced Management Accounting Wednesday, 21 May 2014 10:00 am - 12:00 pm...

You are a very powerful institutional investor that holds 1 million shares of Cisco System, Inc., purchased on February 28, 2003. In researching Cisco, you discovered that they are holding a large...

1. What are the Variables used for the research. 2. Kind of study (exploratory, descriptive, and casual). 3. Define what type of scale to use in each of the research question if applicable?

Bankruptcy is very valuable because Blank _ _ _ _ _ _ . Multiple select question. it can be used strategically to improve a firm's competitive position payments to creditors cease pending the outcome...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".