Question: A project has an initial cost of $ 4 8 , 4 7 5 , expected net cash inflows of $ 1 0 , 0

A project has an initial cost of $48,475, expected net cash inflows of $10,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

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!

Q:

QUESTION 3 REQUIRED Study the information provided below and calculate the following: 3.1 Payback period of Project A (answer expressed in years, months and days). 3.2 Accounting Rate of Return (on...

Q:

1.1 Information: Jumbo Ltd produces tables with a steady monthly demand of 24 000 units. Tables require a component that is acquired from the supplier at R50 per unit. The cost of placing an order is...

Q:

1026224919.pdf - Adobe Acrobat Reader DC (64-bit) elp Y_Jan22_BB... x QUESTION 2 2 / 3 Initial cost Expected economic life Expected disposal/residual value Expected net cash inflows End of: Year 1...

Q:

2.4 Calculate the internal rate of return for Machine B (5marks). QUESTION 2 Machine B R110 000 5 years 0 R Initial cost Expected economic life Expected disposal/residual value Expected net cash...

Q:

QUESTION 1 CAPITAL BUDGETING (20) Zensue Limited intends purchasing a new machine and has a choice between the following two machines: Machine 2 Machines Initial cost Expected economic life Expected...

Q:

1.a) A project has an initial cost of $84,272, and promises to pay a fixed cash flow per year for 3 years. It has been determined that using a discount rate of 14 percent, its net present value is...

Q:

A project has an initial cost of $91,908, and promises to pay a fixed cash flow per year for 3 years. It has been determined that using a discount rate of 10.4 percent, its net present value is...

Q:

Question 5 (20 marks) a. Assume the current spot rate is C$1.1875 and the one-year forward rate is C$1.1724. The nominal risk-free rate in Canada is 4 percent while it is 3 percent in the U.S. Using...

Q:

Question # 1 A) Maestro Frozen Foods expects to earn $365,000 in perpetuity before interest and taxes from its line of gourmet TV dinners. The company has a debt to assets ratio of 40%. The cost of...

Q:

51) You plan to retire 32 years from today. Your retirement account has a current balance of $14,900. If you deposit $3,600 at the end of each year for the next 32 years, what will be your account...

Q:

(a) The beam is embedded at its left end and simply supported at its right end, and w(x) = wo, 0

Q:

Make a comparison between job order, process and ABC cost systems. 1. Compare the three systems a. provide a description of each system b. provide examples of companies using each of the systems c....

Q:

Determine whether each ordered pair is a solution of the equation y = 6 x . ( 3 , 1 8 ) , ( 4 , 4 2 ) , ( - 2 , - 6 ) Determine if ( 3 , 1 8 ) is a solution. ( 3 , 1 8 ) is a solution. ( 3 , 1 8 ) is...

Q:

Marjorie is delivering a presentation to her colleagues in various locations for the quarterly all - hands meeting. She is delivering her speech in a room, alone, with lighting, camera, and sound set...

Q:

During the early stages of an intercultural relationship, be conscious of the ways you reduce uncertainty, keeping in mind that people from other cultures (e.g., high vs. low context) reduce...

Q:

Regarding Question #2, how do these groups manage and address their conflict?

Q:

What irritates you the most about how others handle conflict? Why?