What is payback period? Compute the payback period for an investment requiring an initial outlay of Php.80,000 with expected annual cash inflows of Php.30,000
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- What is payback period? Compute the payback period for an investment requiring an initial outlay of Php.80,000 with expected annual
cash inflows of Php.30,000
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- An investment project has annual cash inflows of $4,200, $5,300, 6,100 and $7,400 and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $7,000? What is the discounted payback period for these cash flows if the initial cost is $10,000? What is the discounted payback period for these cash flows if the initial cost is $13,000? Do not round intermediate calculations and round your final answer to 2 decimal places.An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 11 percent.a) What is the discounted payback period for these cash flows if the initial cost is $8.000? b) What is the discounted payback period for these cash flows if the initial cost is $12,000? c) What is the discounted payback period for these cash flows if the initial cost is $16,000?An investment of P350,000 is made to be followed by payments of P200,000 each year for 3 years. What is the annual rate of return on investment for the project? Please include cash flow diagram.
- An investment project has annual cash inflows of $27,000. The project requires an initial investment of $225,000. What is the payback period for the project?(a) A project requires an initial investment of RM100,000 and is expected to generate cash flows of RM30,000 per year for the next five years. The discount rate is 10%. Calculate the Net Present Value (NPV) of the project. (b) Describe factors and variables that are taken into consideration when calculating the Net Present Value of a project.The net cash flow per year for the investment projects A and B, is presented in the table below. Expected Net Cash Flow ($) Project 0 1 2 3 4 A -10,000 6500 3000 3000 1000 B -10,000 3500 3500 3500 3500 Calculate the NPV, IRR, PI, and PVR for the cash flows given in the following table. Assume the minimum acceptable rate of return of 8%. Which projects should be accepted if they are independent projects? Would the selection of the projects change if the cost of capital were 12%?
- An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 11 percent.What is the discounted payback period for these cash flows if the initial cost is$8.000?Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with a 5% discount rate. Net cash flows for six years of the investment are ₱250,000 with each cash flow occurring at the end of the year. questions: What is the IRR of the project? Using the IRR as your basis, should the project be accepted? What is the profitability index of the project?A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 12 percent. Year Cash flow (OMR) year 0: -26,000, year 1: 18,000, year 2: 10,000, year 3: 7,000, year 4: -15,000, year 5: 9,000. 11. What is the net present value for the project? 12. What is the payback period for the project? 13. What is the discounted payback period for the project? 14. What is the profitability index for the project? 15. Given your analysis, should the firm accept or reject the project?
- A cash flow sequence has a receipt of $20,000 today, followed by a disbursement of $17,000 at the end of this year and again next year, and then a receipt of $13,100 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is%. (Round to two decimal places as needed.)Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with a 5% discount rate. Net cash flows for six years of the investment are ₱250,000 with each cash flow occurring at the end of the year. What is the PV of the cash flows? What is the NPV of the project? Should the project be accepted?A firm is evaluating a proposal which has an initial investment of Php 35,000 and has cash flows of Php 10,000 in year 1, Php 20,000 in year 2, and Php 10,000 in year 3. What is the payback period of the project?
