Purchase Solution

Description of Payback

Not what you're looking for?

Ask Custom Question

Tapley Dental Associates is considering a project that has the following cash flow data. What is the project's payback (in years)?

Year: 0 1 2 3 4 5

Cash flows: -$1,000 $300 $310 $320 $330 $340

a-2.11
b-2.5
c-2.71
d-3.05
e-3.21

Thomson Electric Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC = 10%

Year: 0 1 2 3

Cash flows: -$1,000 $500 $500 $500

$243.43
$251.23
$268.91
$272.46
$289.53

Purchase this Solution

Solution Summary

The solution answers the question below and goes into some detail as well. The solution is ideal for students who are looking for a short answer to the question.

Solution Preview

1. By year 3, the company has recovered $930 (300+310+320). So ...

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.