What is the payback period for the following set of cash flows?
Cash flow: year 0 -$5,700 year 1 $1,350 year 2 $1,550 year 3 $1,950 year 4 $1,450
What is the payback period for the following set of cash flows?
Cash flow: year 0 -$5,700 year 1 $1,350 year 2 $1,550 year 3 $1,950 year 4 $1,450
Related questions
| 1. What is the payback period for the following set of cash flows? |
| Year | Cash Flow |
| 0 | â$ 7,200 |
| 1 | 2,700 |
| 2 | 1,400 |
| 3 | 1,700 |
| 4 | 2,600 |
| 2. An investment project has annual cash inflows of $6,000, $7,100, $7,900, and $9,200, and a discount rate of 16 percent. |
Required:
| What is the discounted payback period for these cash flows if the initial cost is $9,500?
|
| 4. What is the internal rate of return on an investment with the following cash flows? |
| Year | Cash Flow |
| 0 | â$118,000 |
| 1 | 44,900 |
| 2 | 32,500 |
| 3 | 48,750 |
| 5. What is the profitability index for an investment with the following cash flows given a 6 percent required return? |
| Year | Cash Flow |
| 0 | â$21,000 |
| 1 | 7,700 |
| 2 | 10,000 |
| 3 | 9,400 |
| Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. |
| Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| Cash flow | â$4,500 | $1,150 | $2,350 | $1,550 | $1,550 | $1,350 | $1,150 |
| Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
| Discounted payback | years |
| Should it be accepted or rejected? |
|
The payback period for the following set of cash flows is years.
| Year | Cash flow |
| 0 | -2,500 |
| 1 | 1,200 |
| 2 | 2,800 |
| 3 | 2,500 |
| 4 | 2,700 |
