Question: Number 13. Please show work All else equal, the payback period for a project will decrease whenever the a. initial cost increases. b. required return
All else equal, the payback period for a project will decrease whenever the a. initial cost increases. b. required return for a project increases. c. assigned discount rate decreases. d. cash inflows arc moved earlier in time. e. duration of a project is lengthened. Peter's Boats has sales of $685.000 and a profit margin of 4.2%. The annual depreciation expense is $57,630. What is the amount of the operating cash flow if the company has no long-term debt? a. $34.000 b. $86.400 c. $1 18,000 d. $ 120,400 e. $123.900 In the present-value break-even the EAC is used to a. determine the opportunity cost of investment. b. allocate depreciation over the life of the project. c. allocate the initial investment at its opportunity cost over the life project. d. determine the contribution margin to fixed costs. e. None of the above
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
