3)net present value Project B also requires... 1.
A new operating system for an existing machine is expected to cost $270,000 and have a useful life of five years. The payback period is important for the firms for which liquidity is very important. 0. Year 1 $5,000 Year 2 $10,000 Year 3 $10,000 O 3 years O 2 years O 2.2, What is the payback period for a project with the following cash flows? 20,000. Use payback method for your answer. (Round answer to 2 decimal places.)
Will we add Installation cost of new machine or only machine cost will add for payback calculation? We can compute the payback period by computing the cumulative net cash flow as follows: Payback period = 3 + (15,000*/40,000)= 3 + 0.375= 3.375 Years, *Unrecovered investment at start of 4th year:= Initial cost – Cumulative cash inflow at the end of 3rd year= $200,000 – $185,000= $15,000. 5. According to payback period analysis, the purchase of machine X is desirable because its payback period is 2.5 years which is shorter than the maximum payback period of the company.
4year. 20k The following are the cash flows of two projects: |Year |Project A| Project B |0 |-$350| -$350 |1 |180 |250 |2 |180 |250 |3 |180 |250 |4 |180 | What is the payback period of each project? (Do not round intermediate calculations. Due to increased demand, the management of Rani Beverage Company is considering to purchase a new equipment to increase the production and revenues.
According to payback method, the equipment should be purchased because the payback period of the equipment is 2.5 years which is shorter than the maximum desired payback period of 4 years. Explain your answer. Please I need help in solving this question. Round your answer to two decima... Find the Payback for the following Project X. 1,80,000. Assuming that a project L with cash outlay of 1,200,000 and operating cost of 150,000 with cash inflow of 600,000 what is the payback period? What is the payback... A newly purchased piece of equipment costs $4,000,000 initially. Which project has a better payback period? What if the initial cost is $4,300? The Delta company is planning to purchase a machine known as machine X. Sm... Robinson Hardware is adding a new product line that will require an investment of $1,454,000. It is therefore, a useful capital budgeting method for cash poor firms. If 12 % of the energy that a PV system will generate over a 30-year lifetime is needed to build the system, what is the energy payback time (the time at which the energy investment is recovered) fo... What is the payback period for the following set of cash flows? What is the net annual cash flow in case of tax rate is given. The useful life of the machine is 10 years, at the end of which the machine is estimated to have a salvage value... Pinero is considering a $600,000 investment in new equipment that is anticipated to produce the following net cash inflows: Year Net Cash Inflows 1 $120,000 2 250,000 3 110,000 4 80,000 5 160,000 I... Bordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. NPV According to payback method, the project that promises a quick recovery of initial investment is considered desirable.
It is expected to produce the following net cash flows. Cfbdt Rs.1,30,000. Go ahead and submit it to our experts to be answered. What is the payback period? H��W�n�8}�W�. Initial Outlay $8,682 Year 1 $3,764 Year 2 $3,764 Year 3 $3,685 Year 4 $3,783 Round answer to two decimal places. Round your answer to two decimal places. Compute the paybac... Matthew Corporation is adding a new product line that will require an investment of $138,000. The new truck would cost... Wayne Company is considering a long-term investment project called ZIP. Calculating Payback: An investment project provides cash inflows of $970 per year for eight years. Round your answer to two decimal places. Estimate cash receive per year is 6000 and 8000 from the interest of 5%.Time 10years.income tax 25%. What is the payback period for the following set of cash flows? Machine B-3.896, Please can you help me with this question. If the... Offshore Drilling Products, Inc.., imposes a payback cutoff of three years for its international investment projects. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in yea... Any project deemed acceptable using the discounted payback period will also be acceptable if using the traditional payback period.
am just very happy to have got the concept behind payback method. Which ONE of the following statements about the payback method is true?
It is mostly expressed in years.
Does it matter if we use nominal cash flows or real cash flows to calculate payback period? investment A. investment B The old machine was bought five years ago and had an expected economic life of 10 years without salvage... Parker Office Supplies management is considering replacing the company"s outdated inventory-management software. $2000 In uneven cashflow the minimum year is taken as 3, on what basis it has been taken plz elaborate. If the initial cost is $3,400, the payback period is: Payback = 4.10 years For the $3,400 cost, the payback period is: Payback = 4.10 years For an initial cost of $4,450, the payback period is: Payback = 5.36 years The payback period …
What is the project's discounted payback period? Required: Should Rani Beverage Company purchase the new equipment? The company is. The estimated net cash flows of the project are as follows: (The discount rate is 8%).
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