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Solved Calculate The Payback Period For Each Project.

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Question: Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$35,000 –$38,000 1 19,500 20,500 2 16,000 14,500 3 4,400 16,000 a-1. Calculate the payback period for each project. (Do not round Question: Novell, Inc., has the following mutually exclusive projects. Year Project A Project B O $24,000 $27,000 1 14,000 10,500 3.300 15,000 11,500 10,500 a-1. Calculate the payback period for each project. (Do not round Intermediate calculations and round your answers to 3 decimal places, e.g. 32.161.) Project A Project B years years a-2. The cash flow for projects A, B, C are given below: Calculate the payback period and net present value for each project (assuming a 10% discount rate). If A and B are mutually exclusive and C is independent, which project, or combination of projects, is preferred using (1) the payback method or (2) the net present value method?

Payback period is a fundamental investment appraisal technique in corporate financial management. It is a measure of how long it takes for a company to recover its initial investment in a project. It is one of the simplest capital budgeting techniques and, for this reason, is commonly used to evaluate and compare capital projects. [] If the opportunity cost of capital is 9%, which project (s) have a positive NPV? Calculate the payback period for each project. Which project (s) would a firm using the payback rule accept if the cutoff period is three years? All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that both cost $180,000. The company’s board of directors has set a 4-year payback requirement the cost of capital is 10%. The project cash flows are shown in the following table: a. Calculate the payback period for each project.

Solved Novell, Inc., has the following mutually exclusive

Solved For the following project, calculate the payback | Chegg.com

For the Synthetic resin project, starting with the calculation for the payback period, determine the net cash flow at the end of the first year by subtracting Calculate the payback period for each project.b. Calculate the P10–24 All techniques, conflicting rankings Nicholson Roofing Materials Inc. is considering two mutually exclusive projects that both cost $150,000. The company’s board of directors has set a maximum four-year payback requirement, the cost of capital is 9%. Greystone, Inc., has the following mutually exclusive projects: Year Project A Project B 0 – $14,900 $10,200 1 9,400 4,900 8,000 4,400 2,100 6,800 a. Calculate the payback period for each project.

To calculate the payback period for projects A, B, and C, you need to follow these steps: Determine Cash Flows: Identify the cash inflows and outflows for each project over its lifetime.

Question: 1. Given the following cash flows for project A: CF0 = -2,000, CF1 = +500 , CF2 = +1,500 and CF3 = +5,000, calculate the payback period. 2. Refer to the cash flows in #1. Assume the discount rate is 25%, calculate the discount payback period. 3. Valentine Company is considering investing in a new project. The project will need an initial

Question: Novell, Inc., has the following mutually exclusive projects Year Project A Project B -$34,000 -$37,000 19,000 15,500 4,300 1 20,000 14,000 15,500 2 3 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B years years a-2.

  • [Solved] how to calculate payback period
  • Payback Period Explained: Definitions, Formulas and Examples
  • Solved Novell, Inc., has the following mutually exclusive
  • Solved 1. Given the following cash flows for project A: CF0

Problems solved pay back period – Free download as PDF File (.pdf), Text File (.txt) or read online for free. This document provides examples of calculating payback period for various investment projects.

b. Calculate the payback period for each of the three projects. Ignore income taxes. (Round your answers to two decimal places.) 3 years 2.25 years years sProject A Project B2.25 Project C Using the payback method, which project (s) should Rozzis choose? Projects B and C Requirement 2. Calculate the NPV for each project. Ignore income taxes. Question: You are considering 3 independent projects, project A, project B, and project C. Given the following cash flow information, calculate the payback period for each Project A Project B Project C Initial Outlay -1,000 -10,000 -5,000 Inflow Yr

Janina, Incorporated, has the following mutually exclusive projects. Year Project A Project B 0 −$ 29,000 −$ 32,000 1 16,500 17,500 2 13,000 11,500 3 3,800 13,000 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company’s payback period is two years, which, if

The document discusses the calculation of payback period, which is a method used to analyze investment projects. It defines payback period as the time required for an investment to recover its initial cost through cash inflows. The document provides formulas to calculate payback period for both even and uneven cash flows. It includes examples of calculating payback period for Calculate the payback period, Discounted payback period, NPV, IRR and the Modified IRR using the information below. Explain for each criterion, whether the project should be accepted or not. Year 0 –$95,000 Year 1 $136,000 Year 2 $105,000 Year 3 –$145,000 The required rate of return is Question: Grant, Incorporated, has the following mutually exclusive projects a. Calculate the payback period for each project. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Based on the payback period, which project should the company accept? c. If the appropriate discount rate is 14 percent, what is the NPV

Year Project A Project B 0 –$26,000 –$29,000 1 15,000 16,000 2 11,500 10,000 3 3,500 11,500 A- Calculate the payback period for each project Project A years Project B years B-What is the NPV for each project if the appropriate discount rate is 13 percent? Project A years Project B years Here’s the best way to solve it.

Calculate the payback period for each of the following mutually exclusive projects, then comment on the advisability of selection based on the payback period criterion and compare the selecting suggestion with NPV method : Project A has a cost of $15,000, returns $4,000 after-tax the first year with this amount increasing by $1,000 annually over a 5-year life; Project B costs $15,000 Question: Janina, Incorporated, has the following mutually exclusive projects. Year Project A Project B 0 −$ 24,000 −$ 27,000 1 14,000 15,000 2 10,500 11,500 3 3,300 10,500 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company’s payback period is two Questions: (A) Determine the payback period for each project. (B) What is the net present value for each project? (C) If the two projects are independent and mutually exclusive, determine which project the company should invest in using: (I.) payback period; (II) net present value.

Thus the payback period of Project C is 2 Years. Now we will calculate the accounting rate of return for each project. Accounting Rate of Return formula: ARR=Average Annual Net Income/Initial Investment outlay ARR of Project A: Net cash flows generated by the project= $904,000 the initial cost of the project = $350,000 Total profit = $904,000 Question: IntegrativeMultiple IRRs Froogle Enterprises is evaluating an unusual investment project. What makes the project unusual is the stream of cash inflows and outflows shown in the following table: EEB a. Why is it difficult to calculate the payback period for this project? b.

Calculate the payback period for each project. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Based on the payback period, which project should the company accept? If the appropriate discount rate is 14 percent, what is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 Calculating Payback Period The payback period is the time it takes for an investment to generate an amount of income or cash equivalent to the initial investment cost. This method is particularly useful for assessing the liquidity of an investment, as it emphasizes the quick recovery of cash flows, which is crucial in industries subject to rapid technological changes or during periods of Key Takeaways: The payback period is a financial metric used to determine how long it will take to recoup the initial investment in a project or investment. To calculate the payback period, you need to know the initial cost of the project and the net cash flows it generates over time. The formula for calculating payback period is simple: divide the initial investment by the

Free calculator to find payback period, discounted payback period, and the average return of either steady or irregular cash flows. Payback Period Calculation To determine the payback period, we need to calculate the cumulative cash flows for each year until the initial investment of $350,000 is recovered. Cash Flows Breakdown

Question: Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$33,000 –$36,000 1 18,500 19,500 2 15,000 13,500 3 4,200 15,000 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Question: Janina, Incorporated, has the following mutually exclusive projects. a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company’s payback period is two years, which, if either, of these projects should be chosen? Project A Project B Both projects

You will calculate the NPV, IRR, and payback period for each project. Utilizing the capital budgeting calculations, you will need to select the best investment for the company. These calculations will be based on the following scenario: AIU Industries has 3 potential projects to consider, all with an initial cost of $1,250,000. Greystone, Inc., has the following mutually exclusive projects: Year Project A 0 $13,100 1 7,300 6,300 2,100 Project B $ 8,500 3,200 2,700 5,100 WN a. Calculate the payback period for each project. Question: Novell, Inc., has the following mutually exclusive projects: year project A Project b 0 –$23,000 –$26,000 1 13,500 14,500 2 10,000 11,000 3 3,200 10,000 Calculate the payback period for each Novell, Inc., has the following mutually exclusive projects:

Question: Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$27,000 –$30,000 1 15,500 16,500