A firm is evaluating a proposal which has an initial investment of R250 000 and has cash flows of R75 000 per year for five years. The payback period of the project is? What is the correct answer? A. 1.5 years. B. 2 years. C. 3.3 years. D. 4 years.

A firm is evaluating a proposal which has an initial investment of R250 000 and has cash flows of R75 000 per year for five years. The payback period of the project is? What is the correct answer? A. 1.5 years. B. 2 years. C. 3.3 years. D. 4 years.

Name: A firm is evaluating a proposal which has an initial investment of R25
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: A firm is evaluating a proposal which has an initial investment of R250 000 and has cash flows of R75 000 per year for five years. The payback period of the project is? What is the correct answer?A. 1.5 years. B. 2 years.C. 3.3 years. D. 4 years.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

See similar textbooks

Similar questions

Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this 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 firm is evaluating a proposal which has an initial investment of R250 000 and has cash flows of R75 000 per year for five years. The payback period of the project is A. 1.5 years. B. 2 years. C. 3.3 years. D. 4 years.
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: -$25,000 today (t=0); $11,000 after one year (t=1), 17,000 after two years (t=2); and 10,000 after three years (t=3). What is the Internal Rate of Return (“IRR”) for this 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 11 percent. Year Cash flow (OMR) -24,000 17,000 12,000 9,000 -8,000 11,000 1 3 4 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 fim accept or reject 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 11 percent. Year Cash flow (OMR) -24,000 17,000 12,000 9,000 1 2 3 4 -8,000 11,000 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 firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent.YearCash flow (OMR)year 0= -39,000year 1= 28,000year 2= 19,000year 3= 14,000year 4= -12,000year 5= 10,000 Given your analysis, should the firm accept or reject 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 17 percent.YearCash flow (OMR)year 0= -39,000year 1= 28,000year 2= 19,000year 3= 14,000year 4= -12,000year 5= 10,000 What is the payback period for the project?
A firm is evaluating a proposal which has aninital investment of $45,000 and has cash flows of $5,000 in year 1, $20,000 in year 2, $15,000 in year 3 and $10,000 in year 4. The payback period of the project is: Select one: a. 3.5 years b. 3 years c. 4 years d. 2.5 years
A fim evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent. Year Cash flow |(OMR) -24,000 17,000 12,000 9,000 -8,000 11,000 2 3 4 5 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 firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent.YearCash flow (OMR)year 0= -39,000year 1= 28,000year 2= 19,000year 3= 14,000year 4= -12,000year 5= 10,000 What is the net present value for the project?