Question: If a project costs $70,000 and is expected to return $16,500 annually, how long does it take to recover the initial investment? What would be

If a project costs $70,000 and is expected to return $16,500 annually, how long does it take to recover the initial investment? What would be the discounted payback period at i equals=14%?

Assume that the cash flows occur continuously throughout the year.

The payback period is 4.2 years. (Round to one decimal place.)

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 Accounting Questions!

Table 8 - 9 As the high bidder on a monstrous storage locker in Rancho Cucamonga, Darrell discovers much to his dismay that no collectibles or priceless works of art have been seeded in his locker....

1. [5 p] Your brother borrows $1,200 from you. Since hes family, you allow him to pay simple interest at 5%. After 6 years, how much does he owe you? 2. [5 p] Alternatively, you could put your $1,200...

Question 3 No Limits (Pty) Ltd has limited capital of R200 000 to invest in the following projects Year Project A Project B Project C Project D 0 (100 000) (60 000) (120 000) (80 000) 30 000 (40 000)...

Explain a planned or hypothetical Capital Budgeting project for Apple,Inc and estimate the cash flows (minimum of 7 years).Determine the WACC for the company and show the calculations; use this WACC...

1. If the net present value of a project is positive (nonzero), then the project's: A. PI will be less than 1. B. internal rate of return will exceed its required rate of return. C. costs exceed its...

70) Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of 13.1%. Asset C has a beta of .50 and an expected return of 7.50%. The risk-free rate is 4% and the...

Please help. Incorrect and missing information from the previous tutor. Please show your work in the Excel template (see below) and provide a thorough explanation of the following questions. Please...

s the following savings in cash operating costs: e savings in cash operating of return of 16% in its capit mounts. Data Table -X alysis. Assume all cast ctor amounts rounded to thi Year Amount whole...

09-039 March 5, 2009 CEMEX: Globalization \"The CEMEX Way\" Donald R. Lessard and Cate Reavis When one wants to globalize a company, especially when it is from a developing country like Mexico, you...

The Critical Path (CP) activity has ____________. A. infinity float/slack B. average float/slack C. maximum float/slack D. zero float/slack Question 11 Points: 1 The B-C Ratio is computed by dividing...

If a project costs $ 1 4 0 comma 0 0 0 and is expected to return $ 3 0 comma 0 0 0 annually , how long does it take to recover the initial investment? What would be the discounted payback period at...

Suppose the term structure of annualized interest rate is flat at 5%. Consider the following three bonds with face value $100: Bond 1: a 10-year zero coupon bond; Bond 2: a 1.5-year semi-annually...

Being recently hired as the Dir of Finance for Hotel M, the General Manager of the hotel approaches you with concern from hotel ownership that the hotels laundry operation is inefficient. Being new...

A Japanese firm enters into a forward contract. By doing so, it will Question 7 options: increase the risk involved in a transaction. raise the borrower's cost of capital. lower the borrower's cost...

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

Ethical coordination. This would apply to the motivation of those in enterprises who were prepared to give up their personal time and make sacrifices for the good of the enterprise. The extent to...

soyuzno-respublicanskie (Union-republican, linked to affiliated ministries within the Soviet republics where there was a need for more management decentralization in industries such as...

Market coordination. The extent to which horizontal market linkages existed within the formal sector was minimal, or non-existent. Enterprises could be typified as having a lack of relationship with...