JB Manufacturing is considering a projectwith the following after-tax operating cashflows (in millions of dollars):YearsProjected Cash Flow($300)1257520010024The project has a WACC of 10%. What is theproject's discounted payback period?3.00 years2.67 years2.83 years2.50 years2.00 years

pay back period is a period at which the firm recovered its investment. formula: payback period =…

JB Manufacturing is considering a project with the following after-tax operating cash flows (in millions of dollars): Years Projected Cash Flow ($300) 125 75 200 100 2 3 4 The project has a WACC of 10%. What is the project's discounted payback period? 3.00 years 2.67 years 2.83 years 2.50 years 2.00 years

JB Manufacturing is considering a project with the following after-tax operating cash flows (in millions of dollars): Years Projected Cash Flow ($300) 125 75 200 100 2 3 4 The project has a WACC of 10%. What is the project's discounted payback period? 3.00 years 2.67 years 2.83 years 2.50 years 2.00 years

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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Consider a project with the following information: Year 1 2 3 4 5 6 Initial outlay= $950,000 Compute the NPV if the company's discount rate is 10%. 1) $268,244 2) $201,650 3) $213,050 $129 After-tax cash flows $300,000 $400,000 $400,000 $200,000 $150,000 $150,000
Snowflake Resorts is considering investing in a project that has a net investment of $240,000. This project will return positive net cash flows annually for the next 5 years of $80,000 per year. Snowflake Resorts requires a 12% return on all of its investments. The payback period of this investment is ________ years 5 3 4 2 The net present value of this project is $65,355 $48,384 $85,652 $57,635 The profitability index of this project is 2016 5924 7350 3852 When projects have scale differences, only the Net Present Value method will rank the projects correctly True False Fees paid to investment bankers and lawyers for issuing securities are called Component costs Issuance costs Security costs Licensing costs Purposes for considering a capital project may include which of the following Cost reductions Growth projects Government required projects All of the above When the weighted average cost of capital for a project is considered on an after tax…
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year 0 1 2 60 3 100 4 105 (Click on the icon in order to copy its contents into a spreadsheet.) Project Cash Flow (millions) $(180) 100 If the project's appropriate discount rate is 8 percent, what is the project's discounted Davback period? The project's discounted payback period is years. (Round to two decimal places.)
2. Find the amount of years for project A and B
You are considering a project with an initial cost of $8245 and a required return of 11.6%. What is the discounted payback if the expected cash flows are $3148, $3429, $2731, $3048, and $3930 respectively over the next 5 years? a. 3.66 years b. 3.66 years c. 3.36 years ✔ d. 2.96 years e. 2.98 years
answer must be correct
Consider a project with the following cash flows in dollars ($): Year Cash Flow0 -15,0001 50002 50003 50004 5000 Assume the appropriate discount rate for this project is 12%. What is the payback period for this project? (Round your answer to the tenths.)
Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback period? WACC: 10.00% Year 0 1 2 3 4 Cash flows -$750 $525 $485 $445 $405 2.44 years 1.68 years 1.80 years 1.99 years 2.22 years
Shannon Co. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 4 Cash flows -$950 $525 $485 $445 $405 2.44 years 1.79 years 2.22 years 1.61 years 1.99 years
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year 0 Project Cash Flow (millions) $(180) 1 2 3 4 95 60 95 110 (Click on the icon in order to copy its contents into a spreadsheet.) If the project's appropriate discount rate is 13 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.)

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