Year 0 1 2 3 4 5 6 Cash Flow -110000 30000 40000 20000 50000 20000 20000 Given the cash flows in the table above, calculate the payback period assuming the cash flows in years 1 to 4 occur evenly throughout the year. The required rate of return is 12%. Answer in years accurate to two decimal places.

Year 0 1 2 3 4 5 6 Cash Flow -110000 30000 40000 20000 50000 20000 20000 Given the cash flows in the table above, calculate the payback period assuming the cash flows in years 1 to 4 occur evenly throughout the year. The required rate of return is 12%. Answer in years accurate to two decimal places.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

See similar textbooks

Similar questions

An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second year. What is the payback period? a. 1.67 years b. 0.50 year c. 2.00 years d. 1.20 years e. Cannot be determined
Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors require a 13% rate of return on (WACC = 13%). What is the estimated value of operations if investors expect FCF to grow at a constant annual rate of (1) −5%, (2) 0%, (3) 5%, or (4) 10%?
Year Cash Inflow1 14,0002 19,0003 31,0004 05 06 07 130,000 what is the future value of this cash flow at 3%, 11%, and 18% interest rates at the end of year 7
Determine the rate of return per year for the cash flows shown below. Year 0 1 2 3 Cash Flow, $ −125,000 −7,500 84,000 78,000
What is the present value of the following cash flow stream at a rate of 8.0%? Years 0 1 2 3 4 Cash Flows ($) 750.00 2,450.00 2,450.00 - 4,000.00
QUESTION-1 Consider the following cash flow and calculate the rate of return. MARR is 5%, compounded annually. Year 0 1 2 3 4 5 6 7 8 Cash -25,000 6,000 4,000 5,000 7,000 -20,000 ,12,000 16,000 20,000 pls reply urgent
For the cash flows shown, calculate the equivalent annual worth in years 1 through 4 at an interest rate of 10% per year. Year 0 1 2 3 4 Cash Flow, $ 250,000 275,000 300,000 325,000 375,000
What is the present value of the following set of cash flows at an interest rate of 8% p.a. compounded annually? End of Year 1 $1,150 End of Year 2 $2,300 End of Year 3 $5,100 Select one: a. $7,401.20 b. $7,085.23 c. $8,550.00 d. $7,805.23
In a geometric sequence of annual cash flows starting at the end of year zero, the value of A at e zero(Ao) is $1304.35( which is cash flow). The value of the last term in the series, A10 is $5276.82 what is equivalent value for A for year 1-10? Interest is 10%.
Year Cash Flow 1 $ 1,375 2 1,495 3 1,580 4 1,630 If the discount rate is 8 percent, what is the future value of the cash flows in year 4? If the discount rate is 11 percent, what is the future value of the cash flows in year 4? If the discount rate is 24 percent, what is the future value of the cash flows in year 4?
Consider the following cash flows: Year Cash Flow 2 $ 22,000 3 40,000 5 58,000 Assume an interest rate of 8.8 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)