Cash FlowEF$44,000$9,778Cost$90,000Cash flow year 1$36,000Cash flow year 2$9,778$27,000Cash flow year 3Cash flow year 4$9,778$18,000$9,778$9,778$9,000Cash flow year 5$0Cash flow year 6$9,778$0 Payback period. What are the payback periods of projects E and F in the following table:? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 years, which project(s) do youассept?.....What is the payback period for project E?years (Round to one decimal place.)

Answered: Image /qna-images/answer/c50594c3-d19c-4cad-be65-5ec7ec2e115c.jpg

Cash Flow E $44,000 $9,778 $9,778 Cost $90,000 Cash flow year 1 $36,000 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 $27,000 $9,778 $18,000 $9,778 $9,000 $0 $9,778 Cash flow year 6 $9,778 $0

Cash Flow E $44,000 $9,778 $9,778 Cost $90,000 Cash flow year 1 $36,000 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 $27,000 $9,778 $18,000 $9,778 $9,000 $0 $9,778 Cash flow year 6 $9,778 $0

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Payback period. Given the cash flow of four projects-A, B, C, and D-in the following table, , and using the payback period decision model, which projects do you accept and which projects do you reject if you have a 3-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. ..... What is the payback period for project A? years (Round to two decimal places.) Data table With a 3-year cutoff period for recapturing the initial cash outflow, project A would be What is the payback period for project B? (Click on the following icon in order to copy its contents into a spreadsheet.) years (Round to two decimal places.) rejected Cash Flow B D With a 3-year cutoff period for recapturing the initial cash outflow, project B would be Cost $10,000 $25,000 $45,000 $100,000 ассepted Cash flow year 1 $4,000 $2,000 $10,000 $40,000 What is the payback period for project C? Cash flow year 2 $4,000 $8,000…
uring the initial cash outflow? For payback period calp pack period for project A? i Data Table nd to one decimal place.) (Click on the following icon in order to copy its contents into a spreadsheet) Cash Flor B. $15,000 S7,500 S7.500 S7,500 S7.500 S7,500 S7.500 $90,000 $36,000 $27,000 $18,000 $9,000 SO Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 $0 Print Done
What is the payback period for project E? Data Table - X years (Round to one decimal place.) (Click on the following icon in order to copy its contents into a spreadsheet) Cash Flow Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 $46,000 $100,000 $20,000 $9,200 $9,200 $10,000 $9,200 $40,000 $9,200 $30,000 $9,200 $0 $9,200 $0 Print Done
(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $72,000 and expected cash flows of $20,880 at the end of each year for six years. The discount rate for this project is 10.8 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR? a. The payback period of the project is years. (Round to two decimal places.)
Consider a project with the following cash flows: End of Year (n) Cash Flows ($)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%?
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REQUIRED Use the information provided below to calculate the following: 5.1 Payback Period of both projects (expressed in years, months and days). 5.2 Accounting Rate of Return (on initial investment) of Project Spik (expressed to two decima places). 5.3 Net Present Value of both projects. 5.4 Internal Rate of Return of Project Spik (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION Telco Ltd had to choose between purchasing machinery for two projects, Spik and Span, for which the following profits are forecast: Year 1 2 3 4 Spik R70 000 R70 000 R70 000 R70 000 Span R20 000 R60 000 R120 000 R70 000 Each project requires an investment of R800 000. Project Span is expected to have a scrap value of R40 000. The cost of capital is 12%. The straight-line method of depreciation is used. Ignore taxes.
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Please help me with this question (picture below) 1. Calculate the payback period, accounting rate of return, net present value of each project. Based on your calculations, discuss whether the projects should go ahead. Assume that the target value for payback is 3 years for project A and 2 years for project B.2. List advantages and disadvantages of payback period, accounting rate of return, net present value of each project.

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