project's payback period
Q: d) Determine the total Annual Worth for the Project e) What is the Present worth of this project
A: Interest Rate = 10℅ Year Cash Flows Reference 0 -6,500,000.00 First Cost 1 -24,000.00 Annual…
Q: Calculate the following for each of the projects. I Net present value II. Profitability Index III…
A: Net present value (NPV) is the difference between the present value of cash inflows and the present…
Q: he payback period for each project The Net Present Value (NPV) The Profitability index Which project…
A: Formulas:
Q: requirea: 1. Compute the project profitability index for each project. ord
A: Profitability Index = (Net Present Value + Initial Investment)/Initial Investment…
Q: How is the payback period used in capital budgeting? Multiple Choice As a measure of a project's…
A: The payback period is the amount of time it takes for you to recover the cost of your investment. In…
Q: future value of the investment.
A: Investment Proposal: Investment proposal is a type of document containing the business terms and the…
Q: How the regular payback periods and discounted payback periods for projects are calculated, after…
A: Pay back period As name itself indicates that pay back period means that how much time required to…
Q: ta. What is the project's payback?
A: It refers to the time period that is required to get an amount invested in a project with some…
Q: Requirements 1. Determine the payback period of each project. Rank the projects from most desirable…
A: Payback period is a technique of capital budgeting to find out the time period in which the initial…
Q: The profitability index for the project is:
A: Profitability index = Present value of cash inflows / Initial investment Present value of cash…
Q: Calculate the Payback Period of Project A (expressed in years, months and days).
A: Solution:- Payback period means the period at which the summation of cash flows from a project are…
Q: How did they come up with the Total Project Benefit Costs, Yearly NPV, and Cumulative NPV? We are…
A: Here, To Find: Total Project Benefit Costs =? Yearly NPV =? Cumulative NPV =?
Q: Explain the Analysis Period Equals Project Lives?
A: The concept of analysis period equivalent to project lives is essentially utilized in current worth…
Q: Calculate the Rate of Return of the project. Explain, how and why?
A: Calculate the rate of return of a project by dividing the NPV of the project which is RMB…
Q: find The equivalent annual net benefit of this project in excel.
A: Equivalent Annual Net Benefit =Net Present Value of the project/ Present Value factor for desired…
Q: Can we select projects according to their corresponding payback period?
A: Capital Budgeting is a process which helps the firm to determine the expected cash flows of a…
Q: Projects with _____are preferred. O a. Lower payback period. O b. Normal payback period.…
A: The payback period is a concept of capital budgeting whereby the number of periods is given after…
Q: What is the payback period of each project?
A: The payback period is a time period in respect of a project. It is calculated using the future cash…
Q: n WACC can be used as the project's required return
A: Required rate of return is the minimum benefits that can be obtained from undertaking a project.
Q: choosing the most desirable Project using Payback period а. b. Discounted payback c. Net Present…
A: The calculations and the steps can be seen below:
Q: If the net present value of a project is positive, the project earns a return that is Group of…
A: Introduction: According to the net present value rule, executives and shareholders must only invest…
Q: following estimated benefit and cost. By using NPV method, select the project and consider WACC 8%…
A: Net Present Value: Net present value is the measure of profitability in dollar amounts of a project…
Q: One must know the discount rate of an investment project to compute its: NPV, IRR, PI and payback…
A: The various tools employed in capital budgeting are Net present value (NPV), Profitability Index…
Q: Capital budgeting is utilized to determine if a project is worthwhile. The net present value (NPV),…
A: The question is based on the concept of Financial Management.
Q: Illustrate the conventional payback period, annual project cash flow over the life of project, and…
A: The illustration is shown below:
Q: Determine investment flows, annual operation and recovery.
A: The net annual cash flow is computed by deducting the out-of-pocket and other operating expenses…
Q: Define each of the following terms:a. Capital budgeting; payback period; discounted payback period
A: Capital Budgeting is a decision making process in which company requires to evaluate long-term…
Q: How do the Analysis Period Equals Project Lives?
A: It is PW analysis's best situation. Set the study time to suit the lives of options, in which all…
Q: A project's return is referred to as the yield promised by an im·cstment project over its useful…
A: Yes, the project return is referred to as the yield assured by the investment project over project’s…
Q: (a) Calculate the payback period of each project. ( ) (b) Compute the net present value of the two…
A: Payback Period: It is the period in which the project returns its initial outlay/cost. The lower…
Q: To calculate net present value of a project with normal cash flows, find the present value of the…
A: To calculate net present value of a project with normal cash flows, find the present value of the…
Q: What is the project’s discounted payback period?
A: Discount rate: It is the interest rate to determine the PV of future cash inflows from the project
Q: a. calculate the payback period for each project. b. calculate the net present value for each…
A: Payback period is the time required to recover the cost of investment. Payback period = ((Year of…
Q: How do we develop the project cash flows, after taxes, over the life of the project?
A: Cash flows of the project include both cash inflows and cash outflows. To develop cash flows…
Q: Calculate the projects approximate payback period
A: Introduction: The term payback refers to the time taken by an organization to recover the initial…
Q: Calculate operating cash flows. Calculate the payback period for each project to Calculate the net…
A: Operating cash flow :— It is the amount of annual cash inflow of the project. Payback period :—…
Q: a. Calculate the payback period for the proposed investment. b. Calculate the net present value…
A: Payback period is the length of time in which the initial investment will be recovered. NPV is the…
Q: compute each investment payback period.
A: Payback Period: It is a method used in capital budgeting to determine the time it will take for the…
Q: Are Project Lives longer the Analysis period? how?
A: Analysis Period: The time span for determining the economic impact of an expenditure (study duration…
Q: Explain Net Future Worth and Project Balance Diagram?
A: Net future worth is future value of the current assets at some future specific date, it is…
Q: The length of time required to cover the initial outlay of the investment in a project is referred…
A: There are different methods of capital budgeting which help a manager take decision regarding the…
Q: i) Calculate the payback period for each project. ii) Calculate the net present value (NPV) for each…
A: Discount Rate = 15% Year Cash Flow - Replacement Cash Flow - Repair 0 -9000 -2400 1 3000…
Q: What is the formula for calculating present value of a project? If you are given annual profit in…
A: The net present value (NPV) is a capital budgeting tool that is used to determine the profitability…
Q: = project's payback period? (Rom
A: Annual cash inflow = Net operating income + Non cash expenses (In this case, depreciation) Net…
Q: Compute annual rate of return, Pay back period b NPV using 14% discounts rate , Is the Project…
A: Information Provided: Discount Rate = 14%, 11% Cost of equipment = $364,000 Salvage value = $12,000…
Q: What is the project’s payback period?
A: Payback period: A project's payback period can be described as the number of years to recover the…
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- Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.Gallant Sports s considering the purchase of a new rock-climbing facility. The company estimates that the construction will require an initial outlay of $350,000. Other cash flows are estimated as follows: Assuming the company limits its analysis to four years due to economic uncertainties, determine the net present value of the rock-climbing facility. Should the company develop the facility if the required rate of return is 6%?
- [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company’s discount rate is 18%. The project would provide net operating income in each of five years as follows: Sales $ 2,865,000 Variable expenses 1,015,000 Contribution margin 1,850,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 750,000 Depreciation 591,000 Total fixed expenses 1,341,000 Net operating income $ 509,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. rev: 05_11_2019_QC_CS-168512 7. What is the project’s payback period?[The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company’s discount rate is 18%. The project would provide net operating income in each of five years as follows: Sales $ 2,865,000 Variable expenses 1,015,000 Contribution margin 1,850,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 750,000 Depreciation 591,000 Total fixed expenses 1,341,000 Net operating income $ 509,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. rev: 05_11_2019_QC_CS-168512 5. What is the project profitability index for this project?Cardinal Company is considering a project that would require a $2,815.000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. The company's discount rate is 16%. The project would provide net operating income each year as follows: $2,863,000 1,014,000 1,849,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses $781,000 483,000 1,264,000 Net operating income 585,000 Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables. Required: What is the present value of the project's annual net cash inflows? (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.) Present value
- Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: a. 1.81 years O b. None of these Oc. 1.44 years Od. 1.63 years O e. 2.82 years[The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,890,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- $ 641,000 578,000 of-pocket costs Depreciation $ 2,739,000 1,100,000 1,639,000 D Total fixed expenses 1,219,000 Net operating income $ 420,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Foundational 12-2 (Algo) 2. What are the project's annual net cash inflows?[The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,890,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses $2,739,000 1, 100,000 1,639,000 $641,000 578,000 1,219,000 Net operating income $4 420,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. 2. What are the project's annual net cash inflows? Annual net cash inflow
- Cardinal Company is considering a project that would require a $2,765,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The company's discount rate is 14%. The project would provide net operating income each year as follows: $2,851,000 1,150,000 1,701,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 670,000 Depreciation Total fixed expenses 493,000 1,163,000 $ 538,000 Net operating income Required: What are the project's annual net cash inflows? Annual net cash inflowStomberg Corporation has provided the following data concerning an investment project that it is considering: Initial investment Annual cash flow Salvage value at the end of the project Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. The life of the project is 4 years. The company's discount rate is 10%. The net present value of the project is closest to: $184,000 $579,982 O$29,982 $20,420 $ 550,000 $ 180,000 per year 14,000Cardinal Company is considering a project that would require a $2,805,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. The company's discount rate is 14%. The project would provide net operating income each year as follows: $2,741,000 1,125,000 1,616,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 642,000 Depreciation Total fixed expenses 481,000 1,123,000 $ 493,000 Net operating income Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables. Required: What is the present value of the equipment's salvage value at the end of five years? (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.) Present value