Compute the payback period for a project with an initial cost of $100 and project cash flows of $10 for 10 years.

You are responsible to manage an IS project with a 4-year horizon. The annal cost of the project is estimated at $40,000 per year, and a one-time costs of $120,000. The annual monetary benefit of the project is estimated at $96,000 per year with a discount rate of 6 percent. a. Calculate the overall return on investment (ROI) of the project. b. Perform a break-even analysis (BEA). At what year does break-even occur?

A project requires an increase in inventories, accounts payable, and accounts receivable of $125,000, $70,000, and $65,000, respectively. If opportunity cost of capital is 1% and the project has a life of 19 years, and the working capital investments will be recovered at the end of the life of the project, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places. Enter your response below. Number

Determine the payback period, in years, of a project that is expected to generate $80,000 per year in cash flow. The project cost (initial investment) is $1,100,000. Then, name one other method (excluding payback period) used by financial managers, to assess the viability of a multi-year project. State specifically how the method that you named is different from the payback period method.

Determine the average rate of return for a project that is estimated to yield total income of $386,400 over four years, has a cost of $579,600, and has a $64,400 residual value.

You are considering a project with an initial cash outlay of $100,000 and expected free cash flows of $25,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. What is the project’s payback period? What is the project’s NPV ? What is the project’s PI ? What is the project’s IRR ?

An investment project provides cash inflows of $850 per year for five ears. What is the project payback period if the initial cost is $5,600?

Perform a financial analysis for a project. Assume that the projected costs and benefits for this project are spread over 6 years as follows. Estimated costs are $1,100,000 in Year 0, and $50,000 each year in Years 1, 2, 3, 4, 5 and 6. Estimated benefits are $0 in Year 0, and $450,000 each year in Years 1, 2, 3, 4, 5 and 6. Use a 15% discount rate. Suppose the required payback period and discounted payback period are both 3 years. (1) Calculate the payback period (based on the original cash flows without discounting), and evaluate the project based on the payback method. (2) Calculate the discounted payback period (based on discounted cash flows), and evaluate the project based on the discounted payback method. (3) Evaluate the project using the NPV method, and explain whether you would recommend investing in this project.

A project with an initial outlay of $400 has an economic life of 5 years.  The project after-tax cash flows are $150 in Years 1 & 2, then after-tax cash flows of $100 in Years 3 through 5.  Calculate the internal rate of return, net present value and profitability index using an interest rate of 12%.

A new project will have an intial cost of $15,000. Cash flows from the project are expected to be $4,000, $6,000, and $8,000 over the next 3 years, respectively. Assuming a discount rate of 10%, what is the project's IRR?