Answer to Business question: Payback period
Not what you're looking for?
Woodgate Inc. is considering a project that has the following after-tax operating cash flows (in millions of dollars):
Year Project Cash Flow
0 -$300
1 125
2 75
3 200
4 100
Woodgate Inc.'s finance department has concluded that the project has a 10 percent cost of capital.
Refer to Woodgate Inc. What is the project's payback period?
a. 2.00 years
b. 2.50 years
c. 2.65 years
d. 2.83 years
e. 3.00 years
Purchase this Solution
Solution Summary
Calculates payback period.
Solution Preview
Woodgate Inc. is considering a project that has the following after-tax operating cash flows (in millions of dollars):
Year Project Cash Flow
0 -$300
1 125
2 75
3 200
4 ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Motivation
This tests some key elements of major motivation theories.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.