What is the payback period of a project that has \$5 540,000 in initial investment , \$150,000 in annual cash inflows and \$60,000 in annual cash outlfows ? a. 6 years b . 9 years c . 5.4 years d . 3.6 . years e. None of the above
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What is the payback period of a project that has \$5 540,000 in initial investment , \$150,000 in annual
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- 1. A project has an initial cost of 40,000. The future cash flows are 5,500, 15,200, -3,600, and 32,000 for year 1 to 4 respectively. How many IRRs will this project have? a. 3 b. 1 c. 4 d. 0Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,456 5,225 8,223 13,013 8,705 0 1 234 -$ 276,363 26,400 51,000 57,000 402,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback periodConsider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 - $ 215,000 -$ 57,000 34,000 32,900 L234 1 4 45,000 51,000 270,000 24,300 18,300 17,800 The required return on these investments is 13 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B c. Project A Project B d.…
- Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$425,000 44,000 62,000 79,000 540,000 -$40,000 20,400 13,300 18,600 15,400 2 4 The required return on these investments is 10 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B c. Project A years years % Project B % d. Project A…Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 418,000 −$ 36,500 1 47,500 19,700 2 58,500 14,000 3 75,500 15,100 4 533,000 11,900 The required return on these investments is 14 percent. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. Based on your answers in (a) through (d), which project will you finally choose?Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$426,000 –$40,500 1 43,500 20,500 2 62,500 13,200 3 79,500 19,100 4 541,000 15,900 The required return on these investments is 12 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will…
- A project has the following cash flows: Year 0 Cash Flow $70,000 -48,000 -30,000 1 2 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 5 percent? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV of the project if the required return is 0 percent? (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV of the project if the required return is 22 percent? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Internal rate of return b. NPV C. NPV d. NPV %What is the payback period for a project with following cashflow: year 0= -100,000; year 1= 30,000; year 2= 30,000; year 3= 30,000; year 4= 20,000; year 5= 10,000; year 6= 0? * Оа. 2.5 years O Б.3.5 years O C. 4.5 years d. Never fully recovered e. none of the aboveAssume a project has the following expected cash flows: What is the payback period? Year 0 1 2 3 4 Expected Net Cash Flow ($400,000) 100,000 150,000 200,000 250,000
- Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 428,000 -$ 41,500 1 42,500 20,700 2 3 63,500 80,500 13,000 20,100 4 543,000 16,900 The required return on these investments is 14 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B c. Project A Project B d.…Consider a project with the following cash flows: End of Year (n) Cash Flows ($)0 -$22,4001 4,5002 12,6703 14,7804 13,6505 11,4406 7,800(a) At an interest rate of 18%, what is the discounted payback period?(b) What is the discounted payback period if the interest rate is 0%?please answer both questions correctly: 10. A project has the following cash flows: Year Cash Flow 0 $ 43,500 1 −22,500 2 −33,500 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project, if the required return is 12 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV of the project if the required return is 0 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV of the project if the required return is 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 11. Anderson International Limited is…