A. A company is determining whether or not to invest in a project of limited duration. The cash flows that correspond to the project are as follows:

Annual Cash Flows
Year 1 $400,000
Year 2 $400,000
Year 3 $400,000
Year 4 $400,000
Year 5 $400,000

The payback period has been determined to be three and one-half years. What is the amount of the initial investment?

B. A company is determining whether or not to invest in a project of limited duration. The cash flows that correspond to the project are as follows:

Annual Cash Flows
Year 1 $300,000
Year 2 $250,000
Year 3 $100,000 (Total cumulative amount = $650,000)
Year 4 $200,000
Year 5 $250,000

The initial investment required to start this project is $700,000.

1) What is the payback period?

2) What is the discounted payback period, assuming that the required cost of capital is 10 percent? (Round your cumulative cash flows to the nearest whole number. Round your final answer to two decimal points.)

A project has the following cash flows:.
Year Project Cash Flow
1 $-3,000
2 $ 1,000
3 $ 1,000
4 $ 1,000
Its cost of capital is 10 percent. What is the project's discounted payback period?
Choices of answer:
3.00 years
3.30 years
3.52 years
3.75 years
4

A project that costs $2500 to install will provide annual cash flows of $600 for the next 6 yrs. The firm accepts projects with payback periods of less than 5 years. Will the project be accepted? Should this project be pursued if the discount rate is 2%? What if the discount rate is 12%? Will the firm's decision change as t

Timeline Manufacturing Co. is evaluating two projects. the company uses payback criteria of three years or less. Project A has a cost of $912,855, and project B's cost will be $1,175.000. Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a d

1. "You say stock price equals the present value of future dividends? That's crazy! All the investors I know are looking for capital gains."
2.. "I like the IRR rule. I can use it to rank projects without having to specify a discount rate."
3. "I like the payback rule. As long as the minimum payback period is short, t

A project has an initial cost of $8,500 and produces cash inflows of $2,600, $4,900, and $1,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7%?
A. 2.13 years
B. 2.33 years
C. 2.67 years
D. 2.91 years
E. Never

Question 1
Assume you have just been promoted junior financial manager of a company. You are very smart and are planning to be promoted in the next 2-2.5 years. An associate of your company shows you a project with the following cash flows.
End of Year Cash Flows
0 -$100,000
1 $40,000
2 $40,000
3 $40,000
4 $40,000
5 -$

An investment project costs $17,300 and has annual cash flows of $3,900 for 6 years. If the discount rate is zero percent, the discounted payback period is ________years.
If the discount rate is 6 percent, the discounted payback period is ___________years.
If the discount rate is 21 percent, the discounted payback period

The shop foreman at Santa Barbara Rig Service proposed a portable service unit requiring an initial outlay of $100,000 and providing the following year-end cash flows:
Year 1 2 3 4 5
Cash flow 30000 -50000 70000 60000 50000
At a 10% required return, find the payback period and