FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.)arrow_forwardA project has estimated annual net cash flows of $63,800. It is estimated to cost $740,080. Determine the cash payback period. Round the answer to one decimal place.____________ yearsarrow_forwardA project is expected to create operating cash flows of $25,300 a year for four years. The fixed assets required for the project cost $60,000 and will be worthless at the end of the project. An additional $3,000 of net working capital will be required when the project starts and will be fully recovered at the end of the project. What is the project's net present value if the required rate of return is 12 percent? O $14,028.18 O $15.751.49 O $16,954.17 O $17,396.31arrow_forward
- Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Net cash flows Year 0 1 2 3 4 5 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.) $ Cash Inflow (Outflow) (240,000) Year 1 $60,000 Payback period = Year 2 $36,000 Cumulative Net Cash Inflow (Outflow) Year 3 $60,000arrow_forwardThe total investment required for the project is estimated at RO 22500 It is estimated that the project will generate a fixed stream of cash flow of RO 5000 every year. Calculate the payback periodarrow_forwardA project is expected to generate annual revenues of $125, 700, with variable costs of $ 77,800, and fixed costs of $18,300. The annual depreciation is $4, 350 and the tax rate is 25 percent. What is the annual operating cash flow?arrow_forward
- A project generates annual cash flows of $3,000,000 each year for three years and costs $6,000,000. There will be a $1,000,000 cash outflow in year 4. What is the Modified IRR for the project if the discount rate is 12.00%?arrow_forwardA certain project requires an immediate cash outflow of $4 million. At the end of each of the next four years, the investment will generate cash inflows of $1.5 million. That is at the end of each years, 1st, 2nd, 3rd and 4th year cash inflows is $1.5 million. Inflation rate is expected to be 5% per year during the next four year period. Assuming the cash flows are in nominal terms, what will be the project's NPV is you required 5% realrateof return?arrow_forwardAt an interest rate of 12% per year, the cash inflows generated by a gold mining operation are expected to be $225,000 starting in the fifth year, then annually decreasing in a uniform manner to reach zero at the end of year 19. Find and draw cash flow diagram a) Gradient b) Overall equivalent annual wortharrow_forward
- 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. yearsarrow_forwardAn investment project provides cash inflows of $ 2,403 per year for 10 years. What is the project payback period if the initial cost is $ 9,090 ?arrow_forwardA company is considering the purchase of equipment for $270,000. Projected annual cash inflow from this equipment is $61,200 per year. The payback period is;arrow_forward
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