Home / Questions / The initial outlay or cost is $1000000 for a four year project The respective future cash...
The initial outlay or cost is $1,000,000 for a four-year project. The respective future cash inflows for years 1, 2, 3 and 4 are: $500,000, $300,000, $300,000 and $300,000. What is the payback period without discounting cash flows?2)Acme, Inc. is considering a four-year project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Will it accept the project if its payback period is 31 months?3) The initial outlay or cost for a four-year project is $1,000,000. The respective cash inflows for years 1, 2, 3 and 4 are: $500,000, $300,000, $300,000 and $300,000. What is the discounted payback period if the discount rate is 10%?4) Dweller, Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000 and $30,000 for years 1, 2, 3 and 4, respectively. Dweller uses the net present value method and has a discount rate of 12%. Will Dweller accept the project?5)Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo uses the net present value method and has a discount rate of 11%. Will Geronimo accept the project?6) Flynn, Inc. is considering a four-year project that has an initial outlay or cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000, and $30,000 for years 1, 2, 3 and 4, respectively. Flynn uses the internal rate of return method to evaluate projects. What is the approximate IRR for this project?7) Geronimo, Inc. is considering a project that has an initial outlay or cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000, and $80,000, respectively. Geronimo uses the internal rate of return method to evaluate projects. Will Geronimo accept the project if its hurdle rate is 10%?8)Pigeon, Inc. is currently considering an eight-year project that has an initial outlay or cost of $80,000. The future cash inflows from its project for years 1 through 8 are the same at $30,000. Pigeon has a discount rate of 13%. Because of concerns about funds being short to finance all good projects, Pigeon wants to compute the profitability index (PI) for each project. What is the PI for Pigeon’s current project?
May 21 2020 View more View Less
For each of the three theories for the upward slope of the short-run aggregate-supply curve, carefully explain the following:b. what determines the speed of that recovery
Jul 19 2021Why is the United States a leader in agricultural production?
Apr 16 2021What is the limit of the function in the graph at x = 4? YA f(x) 6- O 2+ Select one: O a. 6 O b. (21) O c. 1(41) O d. The limit does not exist. What is the limit of the ...
May 05 2021If dx = 3 0 CP then P =
Apr 29 202112) Marcy's Department store is having a BoGoHo (Buy One, Get One Half Off) sale. The store manager wants a program that allows the salesclerk to enter the prices oft...
Apr 17 2020Pregnant women should not run in marathons in 105-degree heat.12) You live in a part of the country where it rains much of the time, which keeps you from wanting to jog o...
Jan 09 2020Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is ...
Apr 07 2020Two kilograms of water execute a Carnot power cycle. During the isothermal expansion, the water is heated until it is asaturated vapor from an initial statewhere the pres...
Jun 05 2020The weather person gleefully tells us that the temperature is 95, but the heat index is 103 and a heat advisory is in effect. What does this mean? Is humidity high or low...
Dec 11 2019On the basis of his studies, Fiedler identified three critical dimensions of the leadership situation.Which of the following are two of the three critical dimensions that...
Dec 13 2017