L&B.Inc. is analysing an investment project with following free cash flows: 2 18000 year Cash flow...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
L&B.Inc. is analysing an investment project with following free cash flows: 2 18000 year Cash flow (E) 32500 6000 -45000 The company requires a rato of roturn (discount rato) of 8% a yoar. 1. Using this data calculate: a) the Adjustad Payback period. (1 points) b) the Net Presont Value. (1 points) 2. What do you recommend to L&B,Inc,? Justify your answer. L&B.Inc. is analysing an investment project with following free cash flows: 2 18000 year Cash flow (E) 32500 6000 -45000 The company requires a rato of roturn (discount rato) of 8% a yoar. 1. Using this data calculate: a) the Adjustad Payback period. (1 points) b) the Net Presont Value. (1 points) 2. What do you recommend to L&B,Inc,? Justify your answer.
Expert Answer:
Answer rating: 100% (QA)
PRESENT VALUES OF FIRST YEAR6000100855555555 PRESENT VALUES OF SECOND YEAR18000108 2 1543209 P... View the full answer
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
Students also viewed these finance questions
-
What do you recommend to be done with the units in the field to stop the failures?
-
What techniques do you recommend to ensure that the greeting card merchandiser is provided with accurate and timely feedback concerning his or her performance. Explain your answer.
-
The International Industrial Company has an investment project with the following cash flows: a. What is the net present value of these cash flows at 0, 25, 50, and 100 percent discount rates? b....
-
Suppose the final exam in this class has a normal, or bell-shaped, grade distribution of exam scores, with an average score of 80. An approximate function that models your classs grades on the exam...
-
The ABO blood system exhibits a. co dominance. b. multiple alleles. c. incomplete dominance. d. Both a and b are correct.
-
Is an aggressive approach required for successful salespeople today? Why do many firms today use the job title of Sales Representative rather than Salesperson? How can knowledge of buyer behavior,...
-
When conducting an incremental analysis, what step must always be taken immediately prior to beginning the pairwise comparisons? a. Order the alternatives from highest to lowest initial investment b....
-
(NOL without Valuation Account) Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 2006' ?2012. Pretax financial income (loss) and taxable income (loss)...
-
Users complain that a database server has slowed down over the last hour despite the fact that no more users have connected Option. You run an antimalware scan, which comes up clean Option. The...
-
The April 30, 2020, bank statement for Comet Company showed a cash balance of $7,582. The Cash account in the companys general ledger (G/L), according to the companys records on April 30, had a...
-
In previous years, we have asked students to complete an anonymized survey that was then used to generate data. Indicate the type of correlation we should use to examine the relationships between the...
-
(a) Show that f(x) = x + 3x + 1 is one-one. (b) Find (f-)'(1) 2. Cobalt-60 has a half life of 5 years. 10+5=15 Points (a) Find the mass that remains from a 100 mg sample after t years. (b) How long...
-
Consider the pressure on a shot putter's hand as he throws the heavy shot. Part (a) Calculate the average pressure, in newtons per square meter, exerted on the palm of a shotputter's hand by the shot...
-
A shell transformer has 40,000 coils on the primary with 200 coils on the secondary side and an input voltage of 5000V a input amperage of 20 amps. What is the turns ratio, output voltage, amperage...
-
Harborview Clinic's services result in $3,000 in daily billings to third-party payers. On average, it takes the clinic 50 days to collect its receivables. If the interest rate on loans needed to...
-
Assume Costco has 2,000,000 shares authorized and 500,000 shares issued and outstanding on January 1st. In March, Costco completes a 2:1 stock split. In May, Costco repurchases 80,000 shares of...
-
In your reading this week, you learned about the accounting and financial reporting procedures associated with partnerships, including formation, operation, liquidation, and changes in membership. In...
-
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
-
(a) Using the Conceptual Framework, explain the essential characteristics of a liability. (b) Discuss what determines the classification of a liability as current and non-current when preparing a...
-
The following list contains activities that may be added or subtracted from operating profit when reconciling to cash flows from operating activities. Indicate whether each activity is added,...
-
Kane & Associates is a local legal entity employing six solicitors, four paralegals and six administrative staff. The entity has a costing system that assigns costs to clients. There are two...
-
Given the four criteria necessary for a sale to be complete, which of the following is not one of those conditions? 1. Delivery has occurred or services rendered. 2. Cash has been collected. 3. The...
-
What is the difference between a business and a pure charity? Between a business and a governmental agency?
-
Will reform have a greater impact on insurers or providers?
Study smarter with the SolutionInn App