Answered: A project has estimated annual net cash…

A project has estimated annual net cash flows of $30,000. It is estimated to cost $192,000. Determine the cash payback period. If required, round your answer to one decimal place.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A project that provides annual cash flows of $2,500 for 10 years costs $10,000 today. At a required…

A: NPV. Net present value (NPV) is calculated by deducting initial investment from present value of…

Q: 1. Calculate the net present value of this project. (Future Value of $1. Present Value of $1. Future…

A: Net Present Value (NPV) is the difference between the present value of cash inflows and the present…

Q: A capital investment has an initial cost of $523,000. At the end of each of the next 9 years, it is…

A: The fluctuation between the estimated value of inflows and outflows of money over time is known as…

Q: A project has an initial cost of $35,000, expected net cash inflows of $11,000 per year for 8 years,…

A: ayback period (PBP) refers to the period or duration within which the company is able to recover the…

Q: Project L requires an initial outlay at t 0 of $46,000, its expected cash inflows are $13,000 per…

A: The objective of the question is to calculate the payback period of Project L. The payback period is…

Q: If a project has consecutive cash flows over the next 4 years of $1000, $2000, $3000 and $5,100 and…

A: Cash flow in year 1 is $1000 Cash flow in Year 2 is $2000 Cash flow in Year 3 is $3000 Cash flow in…

Q: A project has an initial cost of $50,000, expected net cash inflows of $12,000 per year for 11…

A: Modified rate of return is a measure used to rank the investment alternatives on the basis of…

Q: A project has an initial cost of $55,000, expected net cash inflows of $15,000 per year for 8 years,…

A: > Given data:> Intial investment = -55000> Cash flow per annum = 15000> Number of years…

Q: Cash Payback Period A project has estimated annual net cash flows of $22,500. It is estimated to…

A: CASH PAYBACK PERIOD : IT MEANS THAT THE EXPECTED PERIOD OF TIME BETWEEN THE DATE OF INVESTMENT , AND…

Q: An investment project provides cash inflows of $975 per year for eight years. a. What is the project…

A: The payback period of a project is calculated using following equation Payback period = Initial…

Q: five years? End of Year 1 2 3 Cash Flow In $ $ $ Cash Flow Out $ 300,000 $ 400,000 $ - 490,000…

A: The question is based on the concept of Cost Accounting. Net cash flow is the difference between the…

Q: Calculate the time necessary to achieve an investment goal. Give your answer to the nearest day. Use…

A: In this we have to determine the daily interest rate and from that we can get time required to…

Q: Payback A project has an initial cost of $67,275, expected net cash inflows of $11,000 per year for…

A: ayback period (PBP) refers to the period or duration within which the company is able to recover the…

Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…

A: An item of expenditure on a capital asset that brings back the asset to its working position is…

Q: how many months do a project has to be with a monthly cash flow of $5 000 (starting at end of the…

A: The annuity payments that are made at the beginning of the year are called annuity due and the ones…

Q: MIRR A project has an initial cost of $65,000, expected net cash inflows of $13,000 per year for 7…

A: The MIRR is calculated as the compounded growth rate of ratio of future value of cash inflows and…

Q: A project has estimated annual net cash flows of $57,600. It is estimated to cost $288,000.…

A: The Cash Payback Period refers to the period in which the cost of investment will be recovered by…

Q: A project has an initial cost of $50, 000, expected net cash inflows of $12,000 per year for 11…

A: Variables in the question:Initial cost=$50000Net cash inflows=$12000n=11 yearsCost of capital=8%Cash…

Q: A project has estimated annual net cash flows of $50,600. It is estimated to cost $288,420.…

A: Calculate the payback period as follows: Payback period = Initial investment / Net cash inflows

Q: Calculate the IRR for a project with an initial outlay of $ 10,000 resulting in a cash inflow of $…

A: Internal Rate of Return (IRR) is a financial metric used to measure the profitability of an…

Q: A project has an initial cost of $39,500 expected net cash inflows of $10,000 per year for 9 years,…

A: Modified internal rate of return refers to the percentage of return that is expected from the cash…

Q: A project has estimated annual net cash flows of $59,700. It is estimated to cost $370,140.…

A: The time taken by an entity to recover the initial cost of an investment is known as payback period…

Q: Based on the following table, what is the approximate Internal Rate of Return (IRR) for a project…

A: The objective of this question is to calculate the Internal Rate of Return (IRR) for a project based…

Q: A project has estimated annual net cash flows of $69,300. It is estimated to cost $235,620.…

A: The payback period is the length of time needed to recover the investment made in an asset from its…

Q: A project has estimated annual net cash flows of $69,900. It is estimated to cost $817,830.…

A: Cash payback period = Initial investment / annual net cash flows

Q: Compute the cash payback period for each project. (Round answers to 2 decimal places, es 10.30)…

A: Cash Payback Period = Capital Investment / (Annual Net Income + Annual Depreciation)

Q: A company can purchase a piece of equipment for $4,230. The equipment has a three-year life and…

A: Initial cost = $4,230 Annual cash inflow year 1 = $1,350 Annual cash inflow year 2 = $1,350 Annual…

Q: 日 Problem Walk-Through Project L requires an initial outlay at t= 0 of $55,000, its expected cash…

A: Project's discounted payback period is capital budgeting technique used for making investment…

Q: ompute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the…

A: Payback period is the amount of time required to recover initial investment Payback period =Initial…

Q: A project has estimated annual net cash flows of $53,400. It is estimated to cost $598,080.…

A: There are many methods for evaluating the profitability of capital investment proposals. One of them…

Q: Cash Payback Period A project has estimated annual net cash flows of $46,500. It is estimated to…

A: Payback period refers to the time period that is required to recover the initial cost. With the help…

Q: A project has annual cash flows of €-45,000, €39,000, €18,400 and €8,400. Required: What is the…

A: Payback period is the period required to recover initial amount of investment in the projects under…

Q: (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000…

A: IRR is the rate at which an investment breaks even in terms of expected returns.Key points about…

Q: A project has estimated annual net cash flows of $65,700. It is estimated to cost $762,120.…

A: Cash payback period - Cash payback period = Initial investment/ cash flows per year Cash payback…

Q: Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the…

A: Caluclating Discounting Pay Back Period For Project A

Q: Calculate the discounted payback of a $200,000 project with annual cash flows of $50,000 per year…

A: The cost of the project is $200,000.The annual cash flow is $50,000 and the maturity of the project…

Q: An investment project has annual cash inflows of $5,100, $3,200, $4,400, and $3,600, for the next…

A: The act of analyzing and evaluating any project's feasibility and profitability is regarded as…

Q: Project L costs $55,903.24, its expected cash inflows are $12,000 per year for 10 years, and its…

A: IRR is the rate at which NPV of the project is zero.

Q: Assignment equipment, the useful life of which is four years. he net cash flows for the two projects…

A: As you have asked a question with multiple parts, we will solve the first 3 parts as per policy.…

Q: If the cost of a project is $50,000 and the cash inflows are as given in the table below, what is…

A: given cost of project =$50000

Q: A project has estimated annual net cash flows of $63,800. It is estimated to cost $740,080.…

A: Calculation of Cash payback period is to find the time required to recover the initial investment in…

Q: Payback period. What are the payback periods of projects E and F? Assume all the cash flow is…

A: Payback period is time required to recover initially investment of PROJECT.

Q: Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the…

A: >Please refer to the below spreadsheet for calculation and answer. Cell reference was also…

Q: Payback period. Given the cash flow of two projects—A and B—and using the payback period decision…

A: Payback period is a capital budgeting decision criteria in which projects are selected based on the…

Question

Cash Payback Period

A project has estimated annual net cash flows of $30,000. It is estimated to cost $192,000.

Determine the cash payback period. If required, round your answer to one decimal place.
fill in the blank 1 years

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If the cash flows for project A are C0 = −1,000; C1 = +600; C2 = +400; and C3 = +1,500, calculate the payback period. Group of answer choices 1 year Cannot be determined 3 Years 2 years
D. Cómpute the Pay-back period for a project that costs Sh.80,000 and yields the following cash flows for 5 years. Year 1 3 4. 5. Cash flows 10,000 30,000 15,000 20,000 30,000
An investment project has annual cash inflows of $6,000, $7,100, $7,900 for the next four years, respectively, and $9,200, and a discount rate of 16 percent. What is the discounted payback period for these cash flows if the initial cost is $9,500? (Do not round your intermediate calculations.) Multiple Choice 3.64 years O 1.82 years O 2.57 years O 0.82 years O 1.32 years
Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: −$1,400 $510 $600 $600 $380 $180 Payback years: _______.__
A project has estimated annual net cash flows of $57, 600. It is estimated to cost $288,000. Determine the cash payback period. Round the answer to one decimal place. years
An investment project provides cash inflows of $950 per year for eight years. a. What is the project payback period if the initial cost is $3,450? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the project payback period if the initial cost is $4,500? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the project payback period if the initial cost is $8,600? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
(IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $8,000 resulting in a free cash flow of $1,901 at the end of each year for the next 10 years b. An initial outlay of $8,000 resulting in a free cash flow of $2,152 at the end of each year for the next 20 years c. An initial outlay of $8,000 resulting in a free cash flow of $1,045 at the end of each year for the next 12 years d. An initial outlay of $8,000 resulting in a free cash flow of $2,894 at the end of each year for the next 5 years a. What is the IRR of a project with an initial outlay of $8,000 resulting in a free cash flow of $1,901 at the end of each year for the next 10 years? % (Round to two decimal places.)
A project has an initial cost of $7,000. The cash inflows are $1,000, $2,600, $3,000, and $4,000 over the next four years, respectively. What is the payback period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
A project is expected to produce cash inflows of $5,000 for seven years. What is the maximum amount that can be spent on costs to initiate this project and still consider the project as acceptable, given an 11% discount rate? Select one: Oa. $15,884.15 Ob. $23,340.13 Oc. $25,900.63 O d. $23,560.98 Oe. $26,984.02
Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: Cash flow: Payback 0 1 -$1,000 $350 years 2 $480 3 $520 4 $300 5 $100
Cash Payback Period A project has estimated annual net cash flows of $39,500. It is estimated to cost $158,000. Determine the cash payback period. Round your answer to one decimal place.fill in the blank 1 years
IRR A project has an initial cost of $55,000, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 10%. What is the project's IRR? Round your answer to two decimal places. %