A project has annual cash flows of €-45,000, €35,700, €15,700 and €5,700. Required: What is the payback period for this project? (Round your answer to 2 decimal places (e.g.. 32.16).) Payback period years
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- Payback period. Given the cash flow of two projects-A and B-in the following table, and using the payback period decision model, which project(s) do you accept and which proje period for recapturing the initial cash outflow? For payback period calp What is the payback period for project A? 6 Data Table - X years (Round to one decimal place.) (Click on the following icon D in order to copy its contents into a spreadsheet.) Cash Flow B. Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow $12,000 $6,000 $6,000 $6,000 $100,000 $20,000 $10,000 $40,000 $6,000 $30,000 SO $6,000 $6,000 year 6. SO Print DoneA project has annual cash flows of –€45,000, €35,000, €15,000 and €5,000. Required: What is the payback period for this project? Payback period yearsConsider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 491,000 –$ 92,000 1 114,000 52,000 2 134,000 36,000 3 79,000 33,500 4 474,000 28,600 Whichever project you choose, if any, you require a 15% return on your investment. What is the IRR for each project? (Round the final answers to 2 decimal places.) If you apply the IRR criterion, which investment will you choose? Project A Project B What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decimal places.) Project A Project B If you apply the profitability index criterion, which investment will you choose? Project A Project B Based on your answers in (a) through (e), which project will you finally choose? Project A Project B
- An Investment project provides the cash flow inflows of $615 per year for 8 years. a) What is the project payback period if the initial cost is $1,750? X years. b) What is the project payback period if the initial cost is $3,400? X years. c) WHat is the project payback period if the initial cost is $5,100 X years.Finance Here are the expected cash flows for three projects: Cash Flows (dollars) 1 2 0 5,800 - 1,800 + 1,200 + 1,200 0 + 1,800 - 5,800 + 1,200 + 1,200 Project Year: A B с 3 + 3,400 + 2,400 + 3,400 4 0 + 3,400 + 5,400 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d-1. If the opportunity cost of capital is 10%, calculate the NPV for projects A, B, and C. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) d-2. Which projects have positive NPVs? e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false? a. Payback period b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? C. If you use a cutoff period of 3 years, which projects will you accept?…A project has an initial cost of P52,125, expected net cash inflows of P12,000 per year for 8 years, and a cost of capital of 12%. a.) What is the project's NPV? b.) What is the project's IRR? c.) What is the project's PI? d.) What is the project's payback period?
- b) What is the payback period on each of the following projects? Cash Flow in Dollars Project Time 0 1 A -5,000 +1,000 +1,000 +3,000 -1,000 -5,000 B +1,000 +2,000 +3,000 C +1,000 +1,000 +3,000 +5,000 4 1) Given that you wish to use the payback rule with cut off period of 2 years, which project will you accept? Head 2) If you use a cut off period of 3 years, which projects would you accept? 3) If the opportunity cost of capital is 10%, which projects have positive NPVS? 4) "Payback gives too much weight to cash flows that occur after the cutoff date" – Do you agree with this statement. Please explain in short. lictions: On Ps DELLA project has the following cash flows. What is the payback period? Year Cash Flow 0 −$10,000 1 1,800 2 3,600 3 5,000 4 6,000A project has an initial cost of $7,900 and cash inflows of $2,100, $3,140, $3,800, and $4,500 per year over the next four years, respectively. What is the payback period? I need the steps on a financial calculator the ba II
- Here are the expected cash flows for three projects: Project Cash Flows (dollars) Year 0 Year 1 Year 2 Year 3 Year 4 A-7,000 +1,500 +1,500 +4,000 0B -3,000 0+3,000+3,000 +4,000 C-7,000+1,500 +1,500 +4,000 + 6,000 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d-1. If the opportunity cost of capital is 10%, calculate the NPV for projects A, B, and C. Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. d-2. Which projects have positive NPVs? e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false?(question 3 a,b) a) Calculate the payback period for each project. The maximum allowable payback period setby the company for all projects is 3 years. b) Calculate the net present value (NPV) for each projectCalculate the payback period, the discounted payback period and the NPV for the following project using a rate of 5%. Time Cash Flow 0 - $63,000 $ 21,000 $ 21,000 $ 21,000 $ 21,000 Payback = Discounted Payback =