Question: You are given the following information for two projects: Project A Project B Initial investment $ 4 2 , 0 0 0 $ 4 5

You are given the following information for two projects:
Project A Project B
Initial investment $42,000 $45,000
Year Operating cash inflows
1 $14,000 $29,436
214,00010,120
314,00011,126
414,00010,000
514,00010,000
What is the payback period for Project B?

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:

You are given the following information for two projects: Project A Project B Initial investment $ 4 2 , 0 0 0 $ 4 5 , 0 0 0 Year Operating cash inflows 1 $ 1 4 , 0 0 0 $ 2 8 , 0 0 0 2 1 4 , 0 0 0 4...

Q:

MCQ ' s 1 . Which of the following is the evaluation method that determines how many years it will take to recover the initial cost of the project? A . Payback period B . Internal rate of return C ....

Q:

MCQ ' s 1 . Which of the following is the evaluation method that determines how many years it will take to recover the initial cost of the project? A . Payback period B . Internal rate of return C ....

Q:

Question 1 Figure 13-2. A company is considering two projects. Project A Project B Initial investment $150,000 $150,000 Cash inflow Year 1 $50,000 $40,000 Cash inflow Year 2 $50,000 $40,000 Cash...

Q:

Pick CORRECT answer, explain or show work 23. The capital investment decision making model that assumes that each cash inflow is reinvested at the required rate of return is a. net present value. b....

Q:

You are given the following information for two projects: Project A Project B Initial investment $ 4 2 , 0 0 0 $ 4 5 , 0 0 0 Year Operating cash inflows 1 $ 1 0 , 0 0 0 $ 2 8 , 0 0 0 2 1 0 , 0 0 0 1...

Q:

Question 9 4 pts Kenner Company is considering two projects. Project A Project B Initial investment $850,000 $600.000 Annual cash flows $206,742 $150,274 Life of the project 6 years 5 years...

Q:

Kenner Company is considering two projects. Project A Project B Initial investment $85,000 $24,000 Annual cash flows $20,676 $ 6,011 Life of the project 6 years 5 years Depreciation per year $14,167...

Q:

8A A company is considering two projects. Project A Project B Initial investment $150,000 $150,000 Cash inflow Year 1 $50,000 $40,000 Cash inflow Year 2 $50,000 $40,000 Cash inflow Year 3 $50,000...

Q:

Kenner Company is considering two projects. Project A Project B Initial investment $85,000 $24,000 Annual cash flows $20,676 $ 6,011 Life of the project 6 years 5 years Depreciation per year $14,167...

Q:

Ernst and Anderson is a manufacturer of power tools and other products used in the construction industry. The company was founded in the early 1900s as a manufacturer of quality hand tools such as...

Q:

Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to...

Q:

A bond's current yield is 5 . 7 5 % per year and the bond's yield to maturity is 5 . 1 4 % per year. Therefore, the bond is trading at a q , to its par value. If the bond's yield to maturity does not...

Q:

A luxury hotel touts its five - star average rating. Sara writes a one - star review after a poor experience but notices it has been removed from the company's website the next day and discovers she...

Q:

=+3. How are the media markets delineated from each other, and what interdependence structures do they have?

Q:

=+2. What does medial convergence mean and what repercussions does it have for the media landscape?

Q:

2. Taking an evidence-based approach, what is the economic impact of human capital development?