Cecil company is considering the of a new machine. The machine cost $227,500 and will generate a yearly cash inflow of $35,000. what is the payback period? Requirement: what is the payback period?

Q: Faleye Consulting is deciding which of two computer systems to purchase. It can purchase…

A: Please find the answer to the above question below:

Q: In an investment project, the initial cost of investment is $400,000. The annual revenues are…

A: Payback period:  The payback period (PBP) is an investment assessment approach that determines how…

Q: Faleye Consulting is deciding which of two computersystems to purchase. It can purchase…

A:

Q: A new machine costing $100,000 is expected to save the McKaig Brick Company $15,000 per year for 12…

A: Annual net cash flows is calculated as the difference between the annual cash flows and cash…

Q: The Steel Factory is considering a project that will produce annual cash flows of $43,800, $40,200,…

A: Internal rate of return (IRR) is the rate at which the Net Present Value (NPV) of the project…

Q: ustrial machine costs $124000 and is expected to earn annual net cash inflows as per the following…

A: NPV if the business sets their required rate of return at 11%  Year Cash flow DF@ 11% Discounted…

Q: How many years must the cash flows last for the investment to be acceptable?

A: Time value of money:   Any amount invested today earns an additional income, called interest…

Q: Peng Company is considering buying a machine that will yield income of $2,400 and net cash flow of…

A:

Q: A new machine costing $100,000 is expected to save the McKaig Brick Company $15,000 per year for 12…

A: MACRS is a depreciation method which has highest depreciation in the early years of asset’s life. An…

Q: A new machine is expected to produce the following after-tax cash inflows over a period of 5 years:…

A: Capital budgeting is one of the techniques of financial management analysis. Financial management…

Q: A new machine will cost $750,000. The cash flows generated from this new machine are as follows:…

A: payback period = years before full period + (unrecovered cost at the start of the year /  cashflow…

Q: If a certain machine undergoes a major overhaul now, its output can be increased by 20%, which…

A: The present value is the current value of future cash flow at a certain rate and a certain time…

Q: Wayne Company is considering a long-term investment project called ZIP. ZIP will require an…

A: Expected increase in cash inflows $80,300 Less: Expected increase in cash outflows $40,000…

Q: A new computer system will require an initial outlay of $20,500, but it will increase the firm’s…

A: a) NPV is $1,689.82. Computation of NPV: Since the NPV is positive the system is worth installing.

Q: A construction management company is examining its cash flow requirements for the next few years.…

A: Based on the given question, the cash flows are depicted as -  Years 1 2 3 4 5 6 7 8 9 10 Cash…

Q: A company is considering investing in a new machine that requires a cash payment of $47,947 today.…

A: Internal rate of return method: Internal rate of return method is one of the capital investment…

Q: JFINEX Corporation is considering a new project that will cost 200,000. It will provide an annual…

A: The NPV can be calculated as the Present Value of cash Inflows-Initial Cost

Q: Given a project with cash outlay today of $100,000. The project is expected to generate cash flows…

A: IRR is the rate at which NPV of the project is zero

Q: A company is considering investing in a new machinery. There are actually two potential projects,…

A: Payback period is the amount or time period within which initial investment amount can be recovered.

Q: A restaurant is considering the purchase of new tables and chairs for their dining room with an…

A: Payback period = Initial investment / Annual cash flow

Q: Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this…

A: The difference between net cash Inflow and net cash Outflow over a period of time is called NPV.

Q: If a copy center is considering the purchase of a new copy machine with an initial investment cost…

A: Payback period is a amount of time it takes to recover the investment. In other words it is a time…

Q: First Choice Carpets is considering purchasing new weaving equipment costing​ $730,000. The​…

A: The payback period refers to the duration of time required to recover the cost of an investment.…

Q: mber Company is considering a one-year project that requires an initial investment of $500,000.…

A: Total initial investment = Initial investment + Flotation cost

Q: A new computer system will require an initial outlay of $20,500, but it will increase the firm’s…

A: Capital budgeting refers to the evaluation of the profitability of potential investment and projects…

Q: Halloween, Inc., is considering a new product launch. The firm expects to have an annual operating…

A: The question is based on the concept of Financial Analysis.

Q: Jasmine Manufacturing is considering a project that will require an initial investment of $51,900…

A: Year Cash flow 0 -51900 1 9700 2 9700 3 9700 4 8400 5 8400 6 1500 7 1500 8 1500…

Q: The company is considering investing $810,000 in equipment. They expect the equipment to save…

A: Formulas: Payback period = cash out flows / Cash inflows

Q: Crow Corporation, a company that specializes in precision metal fabrication, is conducting a study…

A: Given information: Interest rate is 12% Number of years is 2 Cost is $260,000

Q: Tiger Trucking Company is considering a project that will produce cash inflows of $18,000 at the end…

A: Given Information: Cash inflows at the end of Year 1 - $18,000 Cash inflows at the end of Year 2 -…

Q: If a copy center is considering the purchase of a new copy machine with an initial investment cost…

A: Note : As per the Q&A guideline we are required to answer the first question only ,please post…

Q: Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be…

A: In the given question we need to calculate the net present value of the project.

Q: If a copy center is considering the purchase of a new copy machine with an initial investment cost…

A: Payback period = Initial cost / annual cashflow

Q: The Payback Period (assume the operating cashflows are spread evenly over each year) The Accounting…

A: Calculation of Payback Period                   Year Annual Cash Flow Cumulative Cash Flow   1…

Q: Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping…

A: NPV is the difference between present value(PV) of all cash inflows and initial investment. NPV =PV…

Q: NOVA Company is considering a long-term investment project called STUDY. STUDY will require an…

A: Net annual cash inflow = Annual cash inflow - annual cash outflow = 79000-40000 = $39000

Q: It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials…

A: Given that: Saving per year = $22000 Required rate of return = 15%

Q: Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2,000 for…

A: Initial investment = 11,548 + 2,000 = 13,548 To calculate the payback period, we need to find the…

Q: Jasmine Manufacturing is considering a project that will require an initial investment of $49,400…

A: The payback period is the estimated period in which the investment is expected to be returned fully.…

Q: Healthy Food, Inc.  is considering two investments.  Each costs $10,000 but they have different cash…

A: NPV computes the existing value of future benefits by discounting future cash flows with a given…

Q: If the cost of capital is ​14%, calculate the net present value​ (NPV) and indicate whether to…

A: Net Present Value: It is a metric used in capital budgeting to determine the profitability of a…

Q: Folsom Advertising, Inc. is considering an investment in a new information system. The newsystem…

A: The Payback Period indicates how long it would take a company to repay investment. This form of…

Q: Salalah Foods has invested in new machinery at a cost of 1450000 OMR. This investment is expected to…

A: as the cash flows are uneven, we will use the following formula to find the payback period. payback…

Q: Young Corporation is considering purchasing equipment that costs $50,000 and is expected to provide…

A: Period Cash Flow showing calculation of cumulative cash flow Cumulative Cash Flow 0 ($50,000)…

Q: You are considering a project with an initial cost of $7,500. What is the payback period for this…

A: Given: Year Cash Flows 0 -7500 1 1100 2 1640 3 3800 4 4500

Q: Jasmine Manufacturing is considering a project that will require an initial investment of $53,700…

A: Ans. The payback period refers to the amount of time taken to recover the cost of an investment.

Q: Big Steve’s, makers of swizzle sticks, is considering the purchase of a new plastic stamping…

A: Initial outlay (I) = $105000 Annual cash inflow (A) = $17000 n = 9 years r = 9%